Washington D.C. – In a significant achievement for American investors, retirement savers, and job creators, U.S. Congressman Pete Sessions (TX-17) and Chairwoman Ann Wagner (MO-2) celebrate the passage of H.R. 2622, the MiFID II Act, in the House by voice vote without objection. This legislation amends the Investment Advisers Act of 1940 to extend a Securities and Exchange Commission (SEC) no-action letter to exclude brokers and dealers who are compensated for investment research from the definition of "investment adviser."
Introduced on April 13, 2023, by Congressman Sessions and Chairwoman Wagner, H.R. 2622 reflects a substantial commitment to safeguard the interests of American investors. After significant support from other members, notably Congressman Josh Gottheimer (NJ-5), the House Financial Services Committee passed the bill overwhelming by a vote of 45 – 2, on May 24, 2023.
Congressman Sessions underscored the importance of this legislation, stating, "This bill protects U.S. small businesses, families, pensioners, law enforcement, firefighters, and Americans saving for retirement. The SEC’s failure to extend the MiFID II no-action letter will result in a significant reduction in the research available to American investors and simultaneously increase operational costs, resulting in unnecessary costs for hard-working people saving for their future. Therefore, the House is compelled to pass this piece of legislation."
Chairwoman Wagner also emphasized the significance of the MiFID II Act, stating, “Widespread dissemination of research by U.S. broker-dealers to investment managers is critical to capital formation and to maintaining the competitiveness and efficiency of U.S. capital markets. Global investment managers rely on the excellent research conducted and provided by U.S. broker-dealers to inform their decision making and fulfill their fiduciary duties to U.S. investors. This legislation would extend an SEC no-action letter, granting U.S. broker-dealers much needed relief and giving the SEC time to properly study the impact of the no-action letter’s expiration.”
H.R. 2622 also addresses the role of investment research in supporting small companies, promoting growth in our economy, and creating jobs. MiFID II is a legislative measure that affirms the federal government’s commitment to safeguarding the interests of American investors, supports the growth of small businesses and free markets, and creates a conducive environment for retirement savers and job creators.
The passage of H.R. 2622 is Congressman Sessions' 190th piece of legislation to be passed by the House of Representatives.
The final version of H.R. 2622 can be found here.
Watch Congressman Sessions' remarks on the House Floor in support of H.R. 2622 here.