The U.S. House approved a bill that would direct the Securities and Exchange Commission (SEC) to provide a safe harbor for research reports that cover exchange traded funds (ETFs).
The Fair Access to Investment Research Act (H.R. 910) addresses anomalies in securities laws and regulations that discourage broker-dealers from publishing research on ETFs. It was sponsored by U.S. Reps. French Hill
(R-AR) and Bill Foster (D-IL).
Since they were introduced in the 1990s, ETFs have grown to over 1,500 funds with $2.1 trillion in assets. Despite their growth in popularity, however, most broker-dealers do not publish research on ETFs.
“This bill provides a simple and common sense fix to those laws by removing this unnecessary burden that prevents investor access to information. I appreciate the leadership and support of Congressman Foster, and I look forward to our continued partnership in working with the Senate to get this important bill signed into law,” Hill said.
It passed overwhelming in the House by a vote of 405-2. Sens. Dean Heller (R-NV) and Gary Peters (D-MI) introduced S. 327, a companion bill in the U.S. Senate. It was approved by the Senate Committee on Banking, Housing, and Urban Affairs in March and is pending further action in the full Senate.
“Our economy is better off when investors have access to the information they need to make sound financial decisions. I am proud to work with Congressman Hill on this bipartisan piece of legislation to help investors make good decisions that help Americans save for retirement more securely,” Foster said.