The Securities Industry and Financial Markets Association (SIFMA) is one of several financial industry groups that are urging the Senate Banking Committee work to advance capital formation legislation.
In a letter to the Senate Banking Committee, the coalition called on the committee to pass a robust capital formation package to modernize U.S. securities laws, reduce burdens on market participants, promote continued innovation in capital markets, and strengthen investor protections.
“We respectfully encourage the Committee to introduce a capital formation legislative package as soon as possible this year that includes the provisions highlighted in this letter,” the letter stated. “We share your goal of strengthening access to U.S. capital markets to support economic growth across the country, and as such, we look forward to continuing to work with you as the Committee advances this critical legislation.”
The legislative package includes two bills that are SIFMA priorities. They include:
- The Improving Disclosure for Investors Act, which would require the SEC to adopt rules that would allow electronic delivery to be the default method of transmitting investor documents, with appropriate safeguards, opt-out rights, and transition rules. E-delivery modernizes how investors receive real-time, secure access to their financial information while reducing costs and environmental impact. The bill currently has 10 Senate cosponsors, including 6 Democrats and 4 Republicans.
- The Retirement Fairness for Charities and Educational Institutions Act of 2025, which would amend securities laws to expand investment options for 403(b) retirement plans covering employees of nonprofits and educational institutions, establishing long-overdue parity with other retirement plan types. The bill has garnered 19 Senate cosponsors, including 9 Democrats and 10 Republicans.
Other key recommendations include the passage of:
- The Increasing Investor Opportunities Act, which would expand closed-end investment companies’ ability to invest in private funds and add protections for closed-end fund investors.
- The Encouraging Public Offerings Act of 2025, which would allow all issuers of public securities to take advantage of the testing of the waters and confidential draft registration submission provisions of the JOBS Act, encouraging more companies to go public.
- The Access to Small Business Investor Capital Act, which would allow investment funds to provide more accurate fee and expense information by omitting potentially misleading BDC-related disclosures.
- The Expanding Well-Known Seasoned Issuer (WKSI) Eligibility Act, which would update the WKSI definition and expand the universe of eligible users, increasing flexibility in registration and investor communications.
- The Senior Security Act of 2025, which would create a Senior Investor Task Force at the SEC to reinforce senior investor protection.
The letter was signed by representatives from SIFMA along with SIFMA’s Asset Management Group, American Securities Association, Financial Services Institute, Investment Adviser Association, Investment Company Institute, Managed Funds Association, and U.S. Chamber of Commerce.