Committee chair backs SEC reporting study

The House Financial Services Committee Chairman Jeb Hensarling (R-TX) is supporting President Trump’s call for the Securities and Exchange Commission (SEC) to study the impact of reporting requirements on American companies.

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Hensarling applauded the president’s efforts to evaluate the requirements impact and cost of federal regulation on American businesses and entrepreneurs.

“In order to sustain 3 percent economic growth and ensure we are able to compete with China, we must modernize our capital markets regulations in a way that maximizes economic growth while maintaining the transparency and accountability needed to protect investors,” Hensarling said. “The JOBS and Investor Confidence Act of 2018, which passed the House with near unanimous support in July, would do just that. I urge my colleagues in the Senate to support small businesses, entrepreneurs and investors by passing JOBS Act 3.0.”

The Modernizing Disclosures for Investors Act is among the 32 pieces of legislation that comprise the JOBS Act 3.0. It requires the SEC to provide a report to Congress with a cost-benefit analysis of reporting companies’ use of SEC Form 10-Q, which companies use to report information every three months. It also offers recommendations for decreasing costs, increasing transparency, and increasing efficiency of periodic financial reporting.