WASHINGTON – Today, Congressman French Hill (AR-02) and Congressman Bill Foster (IL-11) introduced H.R. 910, the Fair Access to Investment Research Act. The bill would address anomalies in securities laws and regulations that discourage broker-dealers from publishing research on exchange-traded funds (ETF) by directing the Securities and Exchange Commission (SEC) to provide a safe harbor for research reports that cover ETFs.
Over the past three decades, ETFs have grown from about 100 funds with $100 billion in assets to over 1,500 funds with $2.1 trillion in assets. However, despite their growth in popularity, due to the anomalies in securities laws, most broker-dealers do not publish research on ETFs.
Congressman Hill introduced the same bill in the previous Congress, and it passed the House in June 2016 by a vote of 411-6. Following the introduction of the bill, Congressman Hill and Congressman Foster released the below statements:
“The use of ETFs continues to grow at a rapid rate. However, this complex market lacks research and information that could greatly benefit consumers. I always will advocate for commonsense legislation that promotes capital formation, removes unnecessary burdens, and improves investor access to information. Last year, the House passed this bill with an overwhelming bipartisan majority, and I look forward to working with my colleague from Illinois, Congressman Foster, to get this important legislation signed into law.” – Congressman French Hill
“I am proud to introduce legislation that will strengthen our financial system with Congressman Hill. These funds’ popularity requires us to work together to make sure investors have access to the information they need to make sound investment decisions. This legislation would create transparency in financial markets that will ultimately benefit consumers.” – Congressman Bill Foster
Senator Dean Heller (NV) and Senator Gary Peters (MI) introduced S. 327, a companion bill to H.R. 910 in the Senate.