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  • Writer's pictureASA Newsroom

ASA Statement Ahead of Financial Services Hearing on Oversight of SEC Investment Management

WASHINGTON, D.C. – The American Securities Association (ASA) released the following statement from President & CEO Chris Iacovella ahead of Director William Birdthistle’s, of the U.S. Securities and Exchange Commission (SEC) Division of Investment Management, testimony before the House Committee of Financial Services Subcommittee on Capital Markets:

“The SEC’s mission is to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation, yet the Director’s refusal to extend MiFID II no-action relief has directly reduced access to capital for American small businesses and transparency for American investors. Congress should be alarmed that an unelected staffer can unilaterally choose to import a European regulation into our markets, that even the Europeans have now realized doesn’t work,” said ASA President & CEO Chris Iacovella. “Congress should mandate the immediate extension of the no-action letter to restore transparency for investors, access to capital for small companies, and level the playing field for all American companies. ASA appreciates the work of the Committee to hold agencies like the SEC accountable and ensure that the SEC is not going beyond its statutory obligations.”

On July 26th, 2022, SEC Investment Management Division Director William Birdthistle announced the SEC would not extend relief provided by the SEC’s 2019 Markets in Financial Instruments Directive II (MiFID II) No-Action Letter (NAL).

On July 3rd, 2023, the SEC refused to extend the MiFID II NAL relief. The SEC’s Small Business Capital Formation Advisory Committee had unanimously recommended an extension.

That same month, ASA sent a letter to House Speaker Kevin McCarthy and Minority Leader Hakeem Jeffries urging the U.S. House to pass Rep. Pete Sessions’ (R-TX) bipartisan legislation- H.R. 2622- which would extend MiFID II no-action relief for six months and study the impact of the expiration of the relief. The House passed H.R. 2622 by a voice vote on July 11th, 2023.


About the American Securities Association

American Securities Association, based in Washington, DC, represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.


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