Does the SEC Need an Office to Address the Concerns of Small Businesses? (H.R. 3784)
Do you support or oppose this bill?
What is H.R. 3784?
(Updated March 12, 2018)
This bill was enacted on December 16, 2016
This bill would establish an Office for Small Business Capital Formation and the Small Business Capital Formation Advisory Committee within the Securities and Exchange Commission (SEC).
The office would be led by the Advocate for Small Business Capital Formation, who would be appointed by and report to the SEC. Among the Advocate’s responsibilities would be:
Help small businesses resolve problems with the SEC;
Analyze the potential impact of proposed rules and regulations that are likely to have a significant effect of small businesses;
Reach out to small businesses to understand issues related to capital formation.
The advisory committee would provide advice to the commission on rules and policies related to capital formation, securities trading, and reporting and governance requirements for emerging and smaller public companies.
Argument in favor
The Securities and Exchange Commission’s regulations can have a profound impact on the ability of small businesses to attract investment. Giving small businesses an advocate within the SEC will make the regulatory process less disruptive.
Argument opposed
Small businesses are already well-represented in the federal regulatory process, and if they have issues with proposed rules they can raise them without having an office specifically designated for them within the SEC.
Impact
Small businesses, the to-be-created Office for Small Business Capital Formation and the Small Business Capital Formation Advisory Committee, and the SEC.
Cost of H.R. 3784
The CBO estimates that implementing this bill would cost $7 million over the 2016-2020 period.
Additional Info
In-Depth: Sponsoring Rep. John Carney (D-DE) introduced this legislation to improve communication between the small business community and leadership at the SEC responsible for drafting and implementing regulations:
“Every American relies on small business — from employment to shopping needs. Considering the crucial role they play in our economy and job creation, providing resources for their success is a no-brainer. The SEC has done an admirable job supporting and advancing the priorities of small businesses. This legislation will help provide the SEC tools to understand their needs and concerns.”
This bill was passed by the House Financial Services Committee unanimously on a vote of 56-0, and it currently has nine cosponsors in the House including six Democrats and three Republicans.
Media:
- Sponsoring Rep. John Carney (D-DE) Press Release
- CBO Cost Estimate
- Ripon Advance
- Sunshine State News
- Securities Industry and Financial Markets Association
(Photo Credit: Flickr user Beth Olson)
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