House Financial Services Committee Passes Six Bills

During a markup last week, the House Financial Services Committee (HSFC) passed six bills which the committee says will protect investors, reform credit union governance, and ensure fair employment opportunities for justice-involved individuals, as families in the U.S. struggle to rebuild their savings amidst the COVID-19 pandemic. The bills include:

The Fair Hiring in Banking Act (H.R. 5911), introduced by Representative Joyce Beatty (D-Ohio), which aims to expand employment opportunities at banks and credit unions by reducing obstacles to employment based on minor criminal offenses in applicants’ past. The bill passed the committee by voice vote.

The Investor Choice Act (H.R. 2620) would ban investment advisors and broker-dealers from including pre-dispute binding mandatory arbitration clauses in their customer agreements. The legislation, introduced by Rep. Bill Foster (D-Ill.), passed by a vote of 27-23.

The Credit Union Governance Modernization Act (H.R. 2311), introduced by Rep. Tom Emmer (R-Minn.), would give Federal credit unions the choice to expel members either under the current bylaws on a vote, or following a new policy used by the National Credit Union Administration (NCUA) board. The committee passed this bill via voice vote.

H.R. 5913, the Protecting Investors from Excessive SPACs Fees Act would authorize the Security and Exchange Commission (SEC) to mandate disclosures by special purpose acquisition companies (SPACs). This bill was introduced by Rep. Brad Sherman (D-Calif.) and passed the Committee by a vote of 29-23.

Also, The Holding SPACs Accountable Act (H.R. 5910), introduced by Rep. Michael San Nicolas (D-Guam) would exclude a SPAC from a safe harbor for forward-looking statements, which would hold them accountable for making false or misleading forward-looking statements. H.R. 5910 passed the committee by a vote of 27-23.

Lastly, H.R. 5914, the Empowering States to Protect Seniors from Bad Actors Act, would shift responsibility for administering the Senior Investor Protection Grant Program from the Consumer Financial Protection Bureau to the SEC. It would also create an interdivisional task force to review grant applications and oversee administration of the program. This legislation was introduced by Rep. Josh Gottheimer (D-N.J.) and passed the committee by a voice vote.