ASA Supports Capital Formation and Regulatory Modernization Markup Bills

WASHINGTON – The American Securities Association (ASA) today sent a letter to the House Financial Services Committee in support of its markup of capital formation and regulatory modernization bills.

"ASA applauds Chairman Hill and the Financial Services Committee for prioritizing measures to promote capital formation and improve the regulatory framework of the U.S. capital markets," said ASA Chief Advocacy Officer Kelli McMorrow. 

In the letter, ASA outlined its support for the following bills:

H.R. 4430, the Expanding WKSI Eligibility Act 

Expanding WKSI status reduces costs for companies because they can incorporate future filings by reference automatically, which keeps their prospectuses current without delay or additional SEC review. This also means investors receive timely and accurate information which decreases investment risk and increases investor confidence.

H.R. 4460, the Stop Agency Fiat Enforcement of Guidance Act

ASA thanks Rep. Meuser for introducing this important bill, which would clarify for regulated entities and the general public that subregulatory “guidance” issued by an agency does not have the force or effect of law and is not binding on the agency or the public. In recent years, unelected and unaccountable career staffers at the federal financial regulators and other agencies, including the Department of Labor (DOL), have sought to make new law through guidance documents issued outside of the Administrative Procedure Act (APA) process. This legislation establishes a truth-in-labeling standard for agencies to make clear that any regulatory effort done without the consent of Congress or outside the APA process is unenforceable. 

Read ASA's full letter here.

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The American Securities Association (ASA) 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.