See below for SEC and FINRA regulations that govern trading in securities quoted on OTC Link® ATS, the OTC Markets SEC registered Alternative Trading System, reprinted from the OTC Markets website.
Rule 12h-6 — Certification by a Foreign Private Issuer regarding the termination of registration of a class of securities under Section 12(g) or the duty to file reports under Section 13(a) or 15(d)
Rule 15c2-11 — Initiation or resumption of quotations without specific information
Rule 15g-“2 — Risk disclosure document relating to the OTC Market
Rule 15g-3 —Broker or dealer disclosure of quotations and other information relating to the OTC Market
Rule 15g-5 — Disclosure of compensation of associated persons in connection with Penny Stock transactions
Rule 15g-6 — Account Statements for Penny Stock customers
Rule 15g-9 — Sales practice requirements for certain low-priced securities
Rule 15g-100 — Schedule 15G: Information to be included in the document distributed pursuant to 15g-2.
For a complete list of all SEC and FINRA rules, please see:
MONDAY, NOVEMBER 26TH
On Monday, no votes are expected in the House.
TUESDAY, NOVEMBER 27TH
On Tuesday, the House will meet at 12:00 p.m. for morning hour and 2:00 p.m. for legislative business. Votes will be postponed until 6:30 p.m.
Legislation Considered Under Suspension of the Rules:
1) Concurring in the Senate Amendment to H.R. 4254 – Women in Aerospace Education Act (Sponsored by Rep. Steve Knight / Science, Space, and Technology Committee)
2) S. 1768 – National Earthquake Hazards Reduction Program Reauthorization Act of 2017 (Sponsored by Sen. Dianne Feinstein / Science, Space, and Technology Committee)
3) H.R. 5273 – Global Fragility and Violence Reduction Act of 2018 (Sponsored by Rep. Eliot Engel / Foreign Affairs Committee)
4) H.R. 1567 – United States-Mexico Economic Partnership Act, as amended (Sponsored by Rep. Henry Cuellar / Foreign Affairs Committee)
5) H.R. 6207 – Democratic Republic of the Congo Democracy and Accountability Act of 2018, as amended (Sponsored by Rep. Chris Smith / Foreign Affairs Committee)
6) H.R. 4591 – Preventing Destabilization of Iraq Act of 2018, as amended (Sponsored by Rep. Adam Kinzinger / Foreign Affairs Committee)
7) Concurring in the Senate Amendment to H.R. 390 – Iraq and Syria Genocide Emergency Relief and Accountability Act of 2018, as amended (Sponsored by Rep. Chris Smith / Foreign Affairs Committee)
8) Concurring in the Senate Amendment to the House Amendment to S. 140 – Frank LoBiondo Coast Guard Authorization Act of 2018 (Sponsored by Sen. Jeff Flake / Transportation and Infrastructure Committee)
WEDNESDAY, NOVEMBER 28TH AND THE BALANCE OF THE WEEK
On Wednesday, the House will meet at 12:00 p.m. for legislative business.
On Thursday, the House will meet at 10:00 a.m. for morning hour and 12:00 p.m. for legislative business.
On Friday, the House will meet at 9:00 a.m. for legislative business.
Legislation Considered Under Suspension of the Rules:
1) H.R. 6032 – State of Modern Application, Research, and Trends of IoT Act (Sponsored by Rep. Bob Latta / Energy and Commerce Committee)
2) H.R. 6753 – Strengthening the Health Care Fraud Prevention Task Force Act of 2018, as amended (Sponsored by Rep. Greg Walden / Energy and Commerce Committee)
3) Concurring in the Senate Amendment to H.R. 2422 – Action for Dental Health Act of 2018 (Sponsored by Rep. Robin Kelly / Energy and Commerce Committee)
4) H.R. 2846 – Federal Agency Customer Experience Act of 2018, as amended (Sponsored by Rep. Brian Fitzpatrick / Oversight and Government Reform Committee)
5) H.R. 3121 – All-American Flag Act, as amended (Sponsored by Rep. Cheri Bustos / Oversight and Government Reform Committee)
6) H.R. 3154 – Inspector General Access Act of 2017 (Sponsored by Rep. Cedric Richmond / Oversight and Government Reform Committee)
7) H.R. 5759 – 21st Century IDEA, as amended (Sponsored by Rep. Ro Khanna / Oversight and Government Reform Committee)
8) H.R. 6777 – Settlement Agreement Information Database Act of 2018 (Sponsored by Rep. Gary Palmer / Oversight and Government Reform Committee)
9) H.R. 6901 – Federal CIO Authorization Act of 2018, as amended (Sponsored by Rep. Will Hurd / Oversight and Government Reform Committee)
10) H.R. 4326 – To designate the facility of the United States Postal Service located at 1211 Towanda Avenue in Bloomington, Illinois, as the “Sgt. Josh Rodgers Post Office”., as amended (Sponsored by Rep. Darin LaHood / Oversight and Government Reform Committee)
11) H.R. 6655 – To designate the facility of the United States Postal Service located at 44160 State Highway 299 East Suite 1 in McArthur, California, as the “Janet Lucille Oilar Post Office”. (Sponsored by Rep. Doug LaMalfa / Oversight and Government Reform Committee)
12) H.R. 6831 – To designate the facility of the United States Postal Service located at 35 West Main Street in Frisco, Colorado, as the “Patrick E. Mahany, Jr., Post Office Building”. (Sponsored by Rep. Jared Polis / Oversight and Government Reform Committee)
13) H.R. 6838 – To designate the facility of the United States Postal Service located at 128 East Carlisle Street in Marion, Kentucky, as the “Ollie M. James Post Office Building”. (Sponsored by Rep. James Comer / Oversight and Government Reform Committee)
14) H.R. 1210 – To designate the facility of the United States Postal Service located at 122 W. Goodwin Street, Pleasanton, Texas, as the “Pleasanton Veterans Post Office”. (Sponsored by Rep. Henry Cuellar / Oversight and Government Reform Committee)
15) H.R. 1211 – To designate the facility of the United States Postal Service located at 400 N. Main Street, Encinal, Texas, as the “Encinal Veterans Post Office”. (Sponsored by Rep. Henry Cuellar / Oversight and Government Reform Committee)
16) H.R. 5412 – To designate the facility of the United States Postal Service located at 25 2nd Avenue in Brentwood, New York, as the “Army Specialist Jose L. Ruiz Post Office Building”. (Sponsored by Rep. Peter King / Oversight and Government Reform Committee)
17) H.R. 6216 – To designate the facility of the United States Postal Service located at 3025 Woodgate Road in Montrose, Colorado, as the “Sergeant David Kinterknecht Post Office”. (Sponsored by Rep. Scott Tipton / Oversight and Government Reform Committee)
18) H.R. 6217 – To designate the facility of the United States Postal Service located at 241 N 4th Street in Grand Junction, Colorado, as the “Deputy Sheriff Derek Geer Post Office Building”. (Sponsored by Rep. Scott Tipton / Oversight and Government Reform Committee)
19) H.R. 6428 – Frank Leone Post Office Act (Sponsored by Rep. Josh Gottheimer / Oversight and Government Reform Committee)
20) H.R. 6621 – To designate the facility of the United States Postal Service located at 530 East Main Street in Johnson City, Tennessee, as the “Major Homer L. Pease Post Office”. (Sponsored by Rep. Phil Roe / Oversight and Government Reform Committee)
21) H.R. 6628 – To designate the facility of the United States Postal Service located at 4301 Northeast 4th Street in Renton, Washington, as the “James Marshall ‘Jimi’ Hendrix Post Office Building”. (Sponsored by Rep. Adam Smith / Oversight and Government Reform Committee)
Additional Legislative Items are Possible
Committee activity for the week of November 26 can be found here.
The Subcommittee on Housing and Insurance has rescheduled the hearing entitled “Oversight of the Federal Housing Administration” from Wednesday, November 28, 2018, at 2:00 p.m.to Wednesday, December 5 at 2:00 p.m. in room 2128 of the Rayburn House Office Building.
Witness List
The Honorable Brian D. Montgomery, Assistant Secretary for Housing, Federal Housing Commissioner, U.S. Department of Housing and Urban Development
The Monetary Policy and Trade Subcommittee will hold a hearing entitled “Evaluating the Effectiveness of the International Financial Institutions” at 9:15 a.m. on Wednesday, November 28, 2018, in Room 2128 of the Rayburn House Office Building.
This will be a one-panel hearing with The Honorable David Malpass, Under Secretary for International Affairs, U.S. Department of the Treasury as the sole witness.
This hearing will examine the Administration’s efforts to reform the World Bank, International Monetary Fund (IMF), and other international financial institutions (IFIs). A particular focus will be the Treasury Department’s strategy to incentivize IFI staff to produce demonstrable results, its oversight of major lending programs, and its examination of resource levels at the World Bank and IMF.
OTC Markets Group has published a proposed amendment to the OTCQX Rules for U.S. Companies, and OTCQX Rules for U.S. Banks.
Proposed Amendment
As of January 1, 2019, OTC Markets Group plans to require all U.S. companies and U.S. Banks trading on OTCQX to provide verified share data through a transfer agent that participates in the Transfer Agent Verified Shares Program. You may find a list of participating transfer agents at Transfer AgentVerified Shares Program.
Background for Proposed Amendment
OTC Markets Group launched the Transfer Agent Verified Shares Program to provide investors with current and reliable share data. The program enables eligible stock transfer agents to report their clients’ share information, including shares authorized and outstanding, to OTC Markets Group on a regular basis via a secure, electronic file transfer.
Share data provided by transfer agents is displayed on www.otcmarkets.com alongside a “Verified by Transfer Agent” logo. OTC Markets Group will use this data to confirm compliance with the OTCQX Rules. This data is also disseminated through OTC Markets Group’s market data feeds and is available to investors and broker-dealers.
OTCQX Rules for U.S. Companies:
All U.S. companies shall retain and maintain a transfer agent that participates in the Transfer Agent Verified Shares Program at all times. (see proposed rules OTCQX Rules for U.S. Companies)
OTCQX Rules for U.S. Banks:
All U.S. Banks shall retain and maintain a transfer agent that participates in the Transfer Agent Verified Shares Program at all times. (see proposed rules OTCQX Rules for U.S. Banks)
Determine Compliance
If a company profile on otcmarkets.com displays a “Verified by Transfer Agent” logo, then the company is already compliant with the proposed
If there is no logo displayed, but the company’s transfer agent’s name is on the list of participating transfer agents, then the issuer may contact its transfer agent to request that they send the company’s data to OTC Markets
If the company’s transfer agent is not on the list of participating transfer agents or the list of those in the process of onboarding, then the issuer may contact its transfer agent to discuss their plans to participate. Alternatively, issuers may also contact Bob Power bob@otcmarkets.com (212) 896- 4406 at OTC Markets Group for further information.
Comments on the proposed rules were originally due OTC Markets Group by October 4, 2018.
Effective Date of Proposed Amendment:
The proposed rules are scheduled to become effective for all OTCQX U.S. companies and OTCQX U.S. Banks on January 1, 2019.
THE BIPARTISAN HOUSING FINANCE REFORM ACT SUMMARY OF KEY PROVISIONS
OVERVIEW
Americans deserve a better single family housing finance model – one that’s sustainable and built to last. Sustainable for homeowners so they can keep their homes; sustainable for taxpayers so they are never again asked to rescue an imperiled housing system; and sustainable for our nation’s economy so we avoid the boom-bust housing cycles that have hurt so many in the past.
The goal of the Bipartisan Housing Finance Reform Act is to provide a safe, sustainable, transparent, and liquid mortgage credit market for all Americans wishing to own a home.
The overarching philosophy of the Bipartisan Housing Finance Reform Act is to create an equal playing field across different ways to finance a single family mortgage, allowing risk to be allocated to those entities which are best able to manage it and avoid too-big-to-fail institutions dominating or restricting access to the mortgage market.
Instead of introducing new, unproven ideas or creating intricate new structures, the Bipartisan Housing Finance Reform Act builds on the working parts of today’s system and known successful pathways to finance mortgages.
That way it can harness the benefits of the existing framework of Ginnie Mae and the government guarantee it provides, while providing options for how to finance mortgage lending so that we maximize choice for borrowers, loan originators, and investors.
In many ways, the disaggregated Ginnie Mae issuer model that the Bipartisan Housing Finance Reform Act contemplates as a replacement for the pre-crisis GSE model is already happening, and happening with private capital not taxpayer dollars.
The Bipartisan Housing Finance Reform Act also seeks to build an affordable housing framework by providing sustainable, dedicated, and transparent funding through an affordability fee. The proposal envisions the fee would provide substantially more funding to address the supply of affordable housing options and directly target underserved individuals and markets that are heavily represented by low-income families and first-time homebuyers.
The Bipartisan Housing Finance Reform Act recognizes the importance of multifamily financing in providing housing options and affordable rental properties and seeks to preserve what works in the market today. The proposal envisions the current multifamily business of Fannie Mae and Freddie Mac will continue to function within the new multifamily housing market as entities with an explicit government guarantee of their multifamily securities provided by Ginnie Mae.
The Bipartisan Housing Finance Reform Act recognizes the importance of continuing to work on reforms that revitalize and update tax, investment, and banking laws to reflect the realities of financing mortgages in the modern age, while maintaining appropriate consumer protections and investor rights. The proposal envisions better engaging private sector capital to inform, compete with, and supplement any guarantees provided by the government to ensure a functioning mortgage market under all economic conditions.
PROVIDE BORROWERS MORE CHOICES TO OBTAIN A CONVENTIONAL MORTGAGE LOAN AND ACHIEVE HOMEOWNERSHIP
Directs Ginnie Mae to establish a new program called Ginnie Mae Plus, which preserves the 30-year fixed rate mortgage.
Offers borrowers access to conventional home loans by guaranteeing payment to investors of pooled loans backed by private credit enhancers through Ginnie Mae Plus.
Promotes a robust “to be announced” or “TBA” market for mortgage securities and preserves the liquidity of long-term traditional mortgage products through Ginnie Mae Plus.
Provides borrowers the benefit of increased options to obtain a safe and affordable loan funded with a Ginnie Mae guarantee.
Minimizes the impact on today’s mortgage rates by utilizing the working parts of today’s system and known successful pathways to finance mortgages.
Increases the liquidity for Ginnie Mae mortgage-backed securities (MBS) and lowers mortgage rates for all borrowers through an expanded pool of eligible loans that can access the Ginnie Mae guarantee.
Sets eligibility requirements for loans to qualify through Ginnie Mae Plus in a similar manner to those for loans guaranteed in the conventional loan market today, subject to: minimum down payments, maximum loan-to-value (LTV) ratios, conforming loan limits, and meeting the Qualified Mortgage (QM) criteria.
Allows borrower freedom to choose products that best match their own needs, with additional options available through standardized private capital transactions that can compete with Ginnie Mae on an equal footing.
Fosters a market that meets borrower demand without restrictions that favor certain products or financing options over others.
Phases in reforms over time, allowing continued and enhanced access to 30-year fixed rate mortgages and existing government guarantees.
UTILIZE EXISTING AVENUES FOR THE GOVERNMENT GUARANTEE AND PROTECT TAXPAYERS WITH PRIVATE CAPITAL
Removes Ginnie Mae from HUD and establishes it as an independent entity.
Continues using Ginnie Mae to guarantee the timely payment of principal and interest to investors of Ginnie Mae MBS.
Grants Ginnie Mae the authority to guarantee eligible MBS backed by private insurance provided the mortgages meet qualifications through Ginnie Mae Plus and the insurance is provided by qualified a Private Credit Enhancer (PCE).
Increases the use of private capital in the system by requiring Ginnie Mae Plus issuers to purchase credit insurance from eligible PCEs to qualify for a government guarantee in the secondary market.
Places the issuer as the last line of private capital before Ginnie Mae steps in to use government funds to pay MBS investors.
Requires any taxpayer exposure through a government guarantee to be transparent, explicit, and paid for under Ginnie Mae.
Limits the government guarantee to catastrophic losses and only attaches at the mortgage-backed security level, not at the entity-level.
Offsets the government’s catastrophic risk position through the use of private reinsurance, which would both inform the market price for catastrophic risk as well as syndicate pieces of that credit risk throughout the financial system.
Expands Ginnie Mae’s capabilities to police the financial health of all Ginnie Mae-approved issuers, monitor the application of the government guarantee, and administer affordability enhancement requirements on guaranteed loans.
INCREASE THE NUMBER OF ACCESS POINTS FOR LENDERS TO FINANCE MORTGAGES
Provides small- and medium-sized lenders more access points to finance mortgages than they have today.
Requires new mortgage funding access points to allow local institutions to maintain their relationship with the borrower.
Provides a pathway for a lender of any size to qualify as a Ginnie Mae-approved issuer and directly access the liquidity of the secondary mortgage market without the need for an intermediary.
Enhances the aggregation capabilities of the 400+ Ginnie Mae issuers today, many of which are small lenders, to allow for robust competition.
Creates certainty for community lending institutions and their mortgage finance operations by retaining cash window functions equivalent to today’s system through Small Lender Access Programs run by PCEs.
Ensures access for lenders of all sizes and prohibits price discrimination based on loan production volume.
Allows the Federal Home Loan Bank (FHLB) system to participate as a Ginnie Mae issuer and aggregate loans through a cash window for its members.
Offers the ability to finance loans secured with private capital by allowing lenders to sell or issue loans directly through a Common Securitization Platform.
MODERNIZE THE MORTGAGE CREDIT RISK SYSTEM THROUGH PRIVATE CREDIT ENHANCERS
Establishes approval and oversight criteria for Private Credit Enhancers (PCEs) as new secondary market entities that replace many of today’s functions that reside at the GSEs.
Allows PCEs to charge a guarantee fee in exchange for covering loan-level credit risk on a pool of mortgages backing a government-guaranteed MBS through Ginnie Mae.
Requires PCEs to hold a bank-like amount of capital through equity ownership, a significant amount of credit risk transfer coverage, and participation in a backstop reserve fund.
Requires PCEs to obtain external private capital in a “first loss” position to horizontally defray and syndicate credit risk to willing counterparties.
Tasks FHFA to establish regulatory capital standards that meet bank-like requirements.
Requires PCEs to hold capital that consists of equity capital and qualifying credit risk transfers sufficient to protect taxpayers in all but the most catastrophic scenario.
Establishes a Private Capital Reserves fund to backstop PCEs, capitalized by assessments on guaranteed loans through a fee set by FHFA using private sector reinsurance tools to determine current market risk conditions.
Mandates that the balance of Private Capital Reserves meet 2 percent of the total unpaid principal balance guaranteed by PCEs.
Requires private credit enhancers and other market participants to operate on a non-discriminatory basis and comply with all applicable federal rules and regulations, including the Fair Housing Act and the Equal Credit Opportunity Act.
REIGNITE THE PRIVATE LABEL MARKET THROUGH STANDARDIZATION AND A COMMON INFRASTRUCTURE PLATFORM
Establishes a new non-government, not-for-profit Mortgage Security Market Exchange (Exchange) to develop common “best practices” standards for the private securitizing, pooling, and servicing of mortgages, and operate a publicly accessible securitization outlet to match loan originators with investors.
Transforms the Common Securitization Platform (CSP) from a proprietary secondary market access point jointly owned by Fannie Mae and Freddie Mac and built only for their benefit, to an open market utility operated by the Exchange.
Offers lenders and investors for the first time a mortgage security market exchange and data repository to foster liquidity in the private label market and provide standardization of key securitization functions.
Requires the Exchange to operate the CSP in an open-access and non-discriminatory manner as a conduit for loan originators of all sizes to access the secondary market using common standards and terms in non-government transactions.
Removes barriers to private capital and provides clear, transparent, and enforceable rules for transactions that will restore market discipline, encourage innovation, and match individuals with global investors outside the government-guaranteed market.
Gives the FHFA clear ability and instructions on how to transfer ownership of the CSP from the GSEs to the Exchange.
Requires the transfer of both historical loan-level data and the underwriting technologies used by the GSEs to the Exchange and grants public access to this information.
Establishes a new mechanism with the Exchange to set and maintain the basic recordation, disclosure, and transparency “best practices” standards for the mortgage industry.
REPEAL THE GSES’ CHARTERS AND TRANSITION THEIR SUCCESSORS INTO A NEW SYSTEM WITHOUT SPECIAL PRIVILEGES OR ADVANTAGES
Places the successor de-chartered entities of Fannie Mae and Freddie Mac on a sustainable path going forward while ensuring no future market participant needs taxpayer support.
Repurposes the successor entities to the GSEs into the new system without special privileges and advantages.
Eases the transition by providing a 5-year window prior to the repeal of the GSE charters.
Places the GSEs through mandatory receivership to prevent the return of a hybrid private entity-public charter approach.
Leaves all legacy obligations in a “bad bank” structure along with a formalized guarantee to preserve liquidity in MBS market.
Repurposes the remaining infrastructure and human capital of the de-chartered GSEs into the new system through a “good bank” structure.
Restricts activities during conservatorship, including setting limitations on retained portfolios and standardizing guarantee fee pricing.
PROMOTE AFFORDABLE HOUSING, MULTIFAMILY HOUSING, AND MODERNIZATION OF OUR HOUSING FINANCE SYSTEM
Establishes bipartisan principles to promote affordable housing, multifamily housing, and modernization of our housing finance system (See Title III of Discussion Draft).
See below for a discussion of HR 4015, the “Corporate Governance and Reform and Transparency Act of 2017.” The bill. which originated in the US House Financial Services Committee, was approved by the US House of Representatives in December 2017 and sent to the US Senate. The US Senate Committee on Banking, Housing, and Urban Affairs held a hearing on the bill in June 2018.
The goal of H.R. 4015 is to improve transparency in the proxy system and enhance shareholder access to investment information by requiring proxy advisory firms to register with the SEC, disclose potential conflicts of interest and codes of ethics, and make publicly available their methodologies for formulating proxy recommendations and analyses.
Each year, public companies hold shareholder meetings at which the company’s shareholders vote for the company’s directors and on other significant corporate actions that require shareholder approval. As part of this annual process, the SEC requires public companies to provide their shareholders with a proxy statement before shareholder meetings. A proxy statement includes all important facts about the matters to be voted on at a shareholder meeting, including, for example, information on board of director candidates, director compensation, executive compensation, related party transactions, securities ownership by certain beneficial owners and management, and eligible shareholder proposals. The information contained in the statement must be filed with the SEC before soliciting a shareholder vote on the election of directors and the approval of other corporate actions.
Solicitations, whether by management or shareholders, must disclose all important facts about the issues on which shareholders are asked to vote. In general, state corporate law governs shareholder voting rights, including the types of corporate actions that require shareholder approval. However, Section 14 of the Securities Exchange Act of 1934 (Exchange Act) authorizes the SEC to promulgate rules governing the solicitation of proxies for most public companies. SEC Regulation 14A governs proxy solicitations and sets forth the categories of information that must be disclosed in proxy solicitations. Regulation 14A also provides for shareholder access to certain information in connection with proxy solicitations, sets forth when a company must include a shareholder’s proposal in its proxy statement, and prohibits the making of materially false and misleading statements or omissions in connection with a proxy solicitation.
Institutional investors, including investment advisers to mutual funds and pension funds, typically hold shares in a large number of public companies. Each year, the investment advisers to these funds vote billions of shares on behalf of their clients, on thousands of proxy ballot items. In 2003, the SEC adopted a rule under the Investment Advisers Act of 1940 requiring an investment adviser that exercises voting authority over its clients’ proxies to adopt policies and procedures designed to ensure that the investment adviser votes those proxies in the best interests of its clients. The SEC’s release adopting the rule clarified that “an adviser could demonstrate that the vote was not a product of a conflict of interest if it voted client securities, in accordance with a pre-determined policy, based upon the recommendations of an independent third party.” As a result, institutional investors increased their reliance on proxy advisory firms to help them decide how to vote their shares. In 2004, the SEC staff issued, without a Commission vote, two no-action letters, which SEC Commissioner Daniel M. Gallagher described in a 2013 speech as “effectively blessing the practice of investment advisers simply voting the recommendations provided by a proxy adviser.”
Largely as a result of the SEC’s regulations, proxy advisory firms now wield outsized influence in the U.S. proxy system. Studies have shown that the two largest proxy advisory firms–Institutional Shareholder Services (ISS) and Glass Lewis & Co.–collectively make up approximately 97% of the proxy advisory industry and can control a significant percentage of shareholder votes in corporate elections, sometimes as high as 40%. This outsized influence raises important public policy concerns.
In particular, regulators, market participants, and academic observers have highlighted potential conflicts of interest inherent in the business models and activities of proxy advisory firms. For example, as indicated above, proxy advisory firms may feel pressured by their largest clients– many of whom are activist investors–to issue vote recommendations that reflect those clients’ specific agendas.
In addition, proxy advisory firms often provide voting recommendations to investment advisers on matters for which they also provide consulting services to public companies. According to a Mercatus Center study, “these consulting services are designed precisely to facilitate managers’ obtaining favorable recommendations.” Some proxy advisory firms also rate or score public companies on its governance structure, policies, and practices, which provides another avenue for proxy advisory firms to influence corporate governance practices.
Given the major role proxy advisory firms play in the U.S. proxy system through their ability to influence corporate governance standards–by supplying voting recommendations and other services despite the risk conflicts of interest, such as those described above–proxy advisory firms have become the subject of greater scrutiny. The Committee is aware of numerous instances whereby the two largest proxy advisory firms have issued vote recommendations to public company shareholders that include errors, misstatements of fact, and incomplete analysis.
Some proxy advisory firms’ recommendations have been made without any contact to the public company, and these same proxy advisory firms encourage companies to join their service in order to have the privilege to “influence” an advisory firm’s recommendations.
Regulators, market participants, and academics have argued that rather than using shareholder votes to maximize shareholder value, proxy advisory firms have instead aligned themselves with single-issue, narrow-issue shareholders, activist shareholders or unions to push social and political initiatives unrelated–and in many cases antithetical–to increasing shareholder returns. In turn, corporate governance decisions occur that are not in the best interest of shareholders and the company. Critics of proxy advisory firms attribute this hijacking of the proxy system to proxy advisory firms generally having no financial interest in a public company’s performance and owing no duty to shareholders.
In response to these concerns, on June 30, 2014, the SEC’s Division of Corporate Finance and the Division of Investment Management jointly issued a staff legal bulletin entitled “Proxy Voting: Proxy Voting Responsibilities of Investment Advisers and Availability of Exemptions from the Proxy Rules for Proxy Advisory Firms.” (“Bulletin”) The Bulletin clarifies that an investment adviser and its clients “have flexibility in determining the scope of the investment adviser’s obligation to exercise proxy voting authority” and that SEC rules do not require investment advisers to vote every proxy. The Bulletin also states that, in considering whether to obtain the assistance of a proxy advisory firm, an investment adviser should ascertain the proxy advisory firm’s “capacity and competency to adequately analyze proxy issues” and “identify and address any conflicts of interest.” The Bulletin adds that, in order to comply with SEC rules, investment advisers should adopt policies and procedures “reasonably designed to provide sufficient ongoing oversight of . . . third party [proxy advisers]” in order to ensure that proxies are voted in the best interest of the investment adviser’s clients. Finally, the Bulletin describes the exemptions available to proxy advisory firms from the filing and disclosure requirements of the SEC’s proxy rules, and clarifies that, in order to rely on these exemptions, proxy advisers must make certain disclosures regarding significant relationships and material interests, including material conflicts that may arise from consulting services or client relationships.
The Corporate Governance Reform and Transparency Act of 2017 addresses these issues in a manner that provides greater accountability and transparency in regards to the proxy advisory industry, thereby helping to ensure that the voting recommendations that proxy advisory firms provide are in fact in the interests of long-term shareholders. By requiring proxy advisory firms to disclose any potential conflicts of interest that may impact their voting recommendations, the amount of impartial information provided to investors actually will be increased, as investors for the first time can be certain that they understand the biases that may be affecting the partiality of the information they are reviewing.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This Section cites H.R. 4015 as the “Corporate Governance Reform and Transparency Act of 2017.”
Section 2. Definitions
This section amends Section 3(a) of the Exchange Act by defining the term “proxy advisory firm” to mean any person registered under section 15H who is engaged in the business of providing proxy voting research, analysis, or recommendations to clients, which constitutes a solicitation; by defining “person associated with” to mean any partner, officer, employee, director or controller or under control of a proxy advisory firm.
Section 3: Registration of proxy advisory firms
This section amends the Exchange Act by inserting Section 15H. This new section states that a proxy advisory firm must file an application for registration with the Commission and disclose any potential conflicts of interest and code of ethics. Specifically, when applying for registration the proxy advisory firm must include the following information: a certification that the firm has the financial and managerial resources to provide proxy advice; the procedures and methodologies that the firm uses in developing proxy voting recommendations; the organizational structure of the firm; whether or not the firm has a code of ethics; any potential or actual conflict of interest; policies and procedures to manage conflicts of interest; and any other information that the Commission deems necessary. The Commission is directed to issue final rules regarding the form in which such information must be filed with the Commission. The Commission also is directed to issue final rules to prohibit or require the management and disclosure of any conflicts of interests related to the offering of proxy advisory services by a registered proxy advisory firm. This section further sets forth that the Commission shall issue final rules to prohibit any act that they believe is unfair, coercive, or abusive relating to the offering of proxy advisory services, as well as make publicly available all information that was provided to them by the proxy advisory firms.
Section 4: Commission annual report
This section requires that the Commission publicly release an annual report that describes the methodologies that they used for formulating proxy recommendations and analyses.
S. 2155, “The Economic Growth, Regulatory Relief, and Consumer Protection Act,” Public Law No: 115-174 (May 2018), represents the most significant pro-growth financial regulatory reform package since the passage of Gramm-Leach-Bliley nearly a generation ago. It amends provisions of the Dodd-Frank Act, including the Volcker Rule.
[Editor’s Note: although the legislation carries an “S” designation, which denotes that the final bill was a Senate legislative vehicle, many provisions of the legislation originated in the Financial Services Committee of the House of Representatives, chaired by Congressman Jeb Hensarling, as illuminated in a previous article here. ]
TITLE I–IMPROVING CONSUMER ACCESS TO MORTGAGE CREDIT
(Sec. 101) This bill amends the Truth in Lending Act (TILA) to allow a depository institution or credit union with assets below a specified threshold to forgo certain ability-to-pay requirements regarding residential mortgage loans. Specifically, those requirements are waived if a loan: (1) is originated by and retained by the institution, (2) complies with requirements regarding prepayment penalties and points and fees, and (3) does not have negative amortization or interest-only terms. Furthermore, for such requirements to be waived, the institution must consider and verify the debt, income, and financial resources of the consumer.
The bill also provides for circumstances in which such requirements shall be waived with respect to a loan that is transferred: (1) by reason of bankruptcy or failure of the originating institution, (2) to a similar institution, (3) in the event of a merger, or (4) to a wholly owned subsidiary of the institution.
(Sec. 102) Mortgage appraisal services donated by a fee appraiser to an organization eligible to receive tax-deductible charitable contributions are deemed to be customary and reasonable under TILA.
(Sec. 104) The bill amends the Home Mortgage Disclosure Act of 1975 to exempt from specified public disclosure requirements depository institutions and credit unions that originate fewer than a specified number of closed-end mortgages or open-end lines of credit.
The Government Accountability Office (GAO) must report on these changes.
(Sec. 105) The bill amends the Federal Credit Union Act to allow a credit union to extend a member business loan with respect to a one- to four-family dwelling, regardless of whether the dwelling is the member’s primary residence. Under current law, a member business loan may be extended with respect to such a dwelling only if it is the member’s primary residence.
(Sec. 106) The bill amends the S.A.F.E. Mortgage Licensing Act of 2008 to revise the Act’s civil liability immunity provisions and to temporarily allow loan originators that meet specified requirements to continue to originate loans after moving: (1) from one state to another, or (2) from a depository institution to a non-depository institution.
(Sec. 107) The bill amends TILA to specify that a retailer of manufactured housing that meets certain requirements is generally not a “mortgage originator” subject to requirements under that Act.
(Sec. 108) The bill exempts from certain escrow requirements a residential mortgage loan held by a depository institution or credit union that: (1) has assets of $10 billion or less, (2) originated 1,000 or fewer mortgages in the preceding year, and (3) meets other specified requirements.
(Sec. 109) The required mortgage disclosure waiting period is eliminated with respect to a second offer of credit if the creditor offers a consumer a lower annual percentage rate in the second offer.
TITLE II–REGULATORY RELIEF AND PROTECTING CONSUMER ACCESS TO CREDIT
(Sec. 201) Federal banking agencies must develop a specified Community Bank Leverage Ratio (the ratio of a bank’s equity capital to its consolidated assets) for banks with assets of less than $10 billion. Such banks that exceed this ratio shall be deemed to be in compliance with all other capital and leverage requirements. Federal banking agencies may consider a company’s risk profile when evaluating whether it qualifies as a community bank for purposes of the ratio requirement.
(Sec. 202) The bill amends the Federal Deposit Insurance Act to exclude reciprocal deposits of an insured depository institution from certain limitations on prohibited broker deposits if the total reciprocal deposits of the institution do not exceed the lesser of $5 billion or 20% of its total liabilities. Reciprocal deposits are deposits that banks make with each other in equal amounts. (Generally, an insured depository institution that is not well capitalized may not accept funds obtained by or through any deposit broker for deposit.)
(Sec. 203) The bill amends the Bank Holding Company Act of 1956 to exempt from the “Volcker Rule” banks with: (1) total assets valued at less than $10 billion, and (2) trading assets and liabilities comprising not more than 5% of total assets. (The Volcker Rule prohibits banking agencies from engaging in proprietary trading or entering into certain relationships with hedge funds and private-equity funds.)
(Sec. 204) Volcker Rule restrictions on entity name sharing are eased in specified circumstances.
(Sec. 205) The bill amends the Federal Deposit Insurance Act to require federal banking agencies to issue regulations allowing certain small depository institutions to satisfy reporting requirements with a reduced Report of Condition and Income (i.e., call report).
(Sec. 206) The bill amends the Home Owners’ Loan Act to permit certain federal savings associations to elect to operate, subject to supervision by the Office of the Comptroller of the Currency, with the same rights and duties as national banks (including operating without certain lending restrictions).
(Sec. 207) The Federal Reserve Board (FRB) must increase, from $1 billion to $3 billion, the consolidated asset threshold (i.e., permissible debt level) for a bank holding company or savings and loan holding company that: (1) is not engaged in significant nonbanking activities; (2) does not conduct significant off-balance-sheet activities; and (3) does not have a material amount of debt or equity securities, other than trust-preferred securities, outstanding. If warranted for supervisory purposes, the FRB may exclude a company from this threshold increase.
(Sec. 208) The bill amends the Expedited Funds Availability Act to apply the Act, which governs bank deposit holds, to American Samoa, the Commonwealth of the Northern Mariana Islands, and Guam. The Act’s one-day extension for certain deposits in noncontiguous states or territories shall also apply to these territories.
(Sec. 209) The bill amends the United States Housing Act of 1937 to reduce inspection requirements and environmental-review requirements for certain smaller, rural public-housing agencies.
(Sec. 210) The bill amends the Federal Deposit Insurance Act to increase the asset limit below which certain depository institutions are eligible for an 18-month, instead of a 12-month, examination cycle.
(Sec. 211) The bill creates the Insurance Policy Advisory Committee on International Capital Standards and Other Insurance Issues at the FRB. The FRB and the Department of the Treasury must report on: (1) their efforts regarding global insurance regulatory or supervisory forums, and (2) any final international insurance capital standards prior to adoption of such standards.
(Sec. 212) The bill amends the Federal Credit Union Act to require the National Credit Union Administration to hold public hearings on its draft annual budget.
(Sec. 213) A financial institution is authorized to record personal information from a scan, copy, or image of an individual’s driver’s license or personal identification card and store the information electronically when an individual initiates an online request to open an account or obtain a financial product. The financial institution may use the information for the purpose of verifying the authenticity of the driver’s license or identification card, verifying the identity of the individual, or complying with legal requirements. The financial institution must delete any copy or image of an individual’s driver’s license or personal identification card after use.
(Sec. 214) The bill amends the Federal Deposit Insurance Act to specify that a federal banking agency may not subject a depository institution to higher capital standards with respect to a high-volatility commercial real-estate (HVCRE) exposure unless the exposure is an HVCRE acquisition, development, or construction (ADC) loan.
An HVCRE ADC loan : (1) is secured by land or improved real property; (2) has the purpose of providing financing to acquire, develop, or improve the real property such that the property becomes income-producing; and (3) is dependent upon future income or sales proceeds from, or refinancing of, the real property for the repayment of the loan.
(Sec. 215) The Social Security Administration (SSA) is directed to develop a database to facilitate the verification of consumer information upon request by a certified financial institution. Such verification shall be provided only with the consumer’s consent and in connection with a credit transaction. Users of the database shall pay system costs as determined by the SSA.
(Sec. 216) The bill directs Treasury to report on the risks of cyber threats to financial institutions and capital markets.
(Sec. 217) The bill amends the Federal Reserve Act to lower the maximum allowable amount of surplus funds of the Federal Reserve banks.
TITLE III–PROTECTIONS FOR VETERANS, CONSUMERS, AND HOMEOWNERS
(Sec. 301) The bill amends the Fair Credit Reporting Act to increase the length of time a consumer reporting agency must include a fraud alert in a consumer’s file. It also: (1) requires a consumer reporting agency to provide a consumer with free credit freezes and to notify a consumer of their availability, (2) establishes provisions related to the placement and removal of these freezes, (3) creates requirements related to the protection of the credit records of minors.
(Sec. 302) The bill limits, and establishes a dispute process and verification procedures with respect to, the inclusion of a veteran’s medical debt in a consumer credit report.
(Sec. 303) The bill extends immunity from liability to certain individuals employed at financial institutions who, in good faith and with reasonable care, disclose the suspected exploitation of a senior citizen to a regulatory or law-enforcement agency. Similarly, the employing financial institution shall not be liable with respect to disclosures made by such employees.
The bill allows financial institutions and third-party entities to offer training related to the suspected financial exploitation of a senior citizen to specified employees. The bill provides guidance regarding the content, timing, and record-maintenance requirements of such training.
(Sec. 304) The sunset provision of the Protecting Tenants at Foreclosure Act is repealed, restoring notification requirements and other protections related to the eviction of renters in foreclosed properties. (The Act expired on December 31, 2014.)
(Sec. 305) Treasury may use loan guarantees and credit enhancements to remediate lead and asbestos hazards in residential properties.
(Sec. 306) The bill amends the United States Housing Act of 1937 to revise the Family-Self-Sufficiency (FSS) program, an employment and savings incentive program for families that reside in public housing or have housing vouchers. Specifically, the bill:
combines existing, separately operated FSS programs into a single program;
extends program eligibility to tenants of certain privately owned properties subsidized with project-based rental assistance;
revises program requirements related to eligibility, supportive services, and escrow deposits; and
otherwise modifies the FSS program.
(Sec. 307) The Consumer Financial Protection Bureau is directed to promulgate ability-to-repay regulations regarding property assessed clean energy financing.
(Sec. 308) The bill directs the GAO to report on the accuracy and security of consumer reporting agencies and consumer reports.
(Sec. 309) A refinanced home loan may not be guaranteed by the Department of Veterans Affairs (VA), unless: (1) a specified minimum time period has passed between the original loan and the refinancing; and (2) the lender complies with provisions related to fee recoupment, mortgage interest rates, and net tangible benefit tests.
The Department of Housing and Urban Development (HUD) and the Government National Mortgage Association (Ginnie Mae) must report on the liquidity of the VA Housing Loan Program.
The VA must report annually on refinanced home loans to veterans.
(Sec. 310) The bill amends the Federal National Mortgage Association Charter Act and the Federal Home Loan Mortgage Corporation Act to allow the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), when determining whether to purchase a residential mortgage, to consider a borrower’s credit score only if certain procedural requirements are met with respect to the validation and approval of credit-scoring models.
The Federal Housing Finance Agency must, by regulation, establish standards and criteria for processes used by Fannie Mae and Freddie Mac to validate and approve credit-scoring models in accordance with the bill.
(Sec. 311) The GAO is directed to report on foreclosures, homeownership, and mortgage defaults in Puerto Rico before and after Hurricane Maria.
(Sec. 312) HUD must report on and provide recommendations for lead-based paint hazard prevention and abatement, with an emphasis on preventing exposure in children.
TITLE IV–TAILORING REGULATIONS FOR CERTAIN BANK HOLDING COMPANIES
(Sec. 401) The bill amends the Financial Stability Act of 2010, with respect to nonbank financial companies supervised by the FRB and certain bank holding companies, to:
increase the asset threshold at which certain enhanced prudential standards shall apply, from $50 billion to $250 billion, while allowing the FRB discretion in determining whether a financial institution with assets equal or greater than $100 billion must be subject to such standards;
increase the asset threshold at which company-run stress tests are required, from $10 billion to $250 billion; and
increase the asset threshold for mandatory risk committees, from $10 billion to $50 billion.
(Sec. 402) The bill requires the appropriate federal banking agencies to exclude, for purposes of calculating a custodial bank’s supplementary leverage ratio, funds of a custodial bank that are deposited with a central bank. (“Supplementary leverage ratio” is a capital adequacy measure that refers to the ratio of a banking organization’s tier-one capital to its leverage exposure.) The amount of such funds may not exceed the total value of deposits of the custodial bank linked to fiduciary or custodial and safekeeping accounts.
(Sec. 403) This bill amends the Federal Deposit Insurance Act to require certain municipal obligations to be treated as level 2B liquid assets if they are investment grade, liquid, and readily marketable. Under current law, corporate debt securities and publicly traded common-equity shares, but not municipal obligations, may be treated as level 2B liquid assets (which are considered to be high-quality assets).
TITLE V–ENCOURAGING CAPITAL FORMATION
(Sec. 501) The bill amends the Securities Act of 1933 to exempt from state registration securities qualified for national trading by the Securities and Exchange Commission (SEC) and authorized to be listed on a national securities exchange. Currently, securities listed on exchanges specified by statute or SEC rule are exempt.
(Sec. 502) The bill directs the SEC to report on the risks and benefits of algorithmic trading in capital markets.
(Sec. 504) The bill amends the Investment Company Act of 1940 to exempt from the definition of an “investment company,” for purposes of specified limitations applicable to such a company under the Act, a qualifying venture capital fund that has no more than 250 investors. Specifically, the bill applies to a venture capital fund that has less than $10 million in aggregate capital contributions and uncalled committed capital. Under current law, a venture capital fund is considered to be an investment company if it has more than 100 investors.
(Sec. 505) The bill requires the SEC to offset future fees and assessments due from a national securities exchange or association that: (1) has previously overpaid such fees and assessments, and (2) informs the SEC of the overpayment within 10 years.
(Sec. 506) The bill amends the Investment Company Act of 1940 to apply the Act to investment companies created under the laws of Puerto Rico, the U.S. Virgin Islands, or any other U.S. possession.
(Sec. 507) The bill requires the SEC to increase, from $5 million to $10 million, the 12-month sales threshold beyond which an issuer is required to provide investors with additional disclosures related to compensatory benefit plans.
(Sec. 508) The bill expands the applicability to issuers of “Regulation A+” (which exempts certain smaller offerings from securities registration requirements).
(Sec. 509) The bill directs the SEC to revise registration rules to allow a closed-end company to use offering and proxy rules currently available to other issuers of securities, thereby reducing filing requirements and restrictions on communications with investors in certain circumstances. (A closed-end company is a publicly traded investment management company that sells a limited number of shares to investors in an initial public offering.)
TITLE VI–PROTECTIONS FOR STUDENT BORROWERS
(Sec. 601) The bill amends TILA to prospectively revise provisions relating to cosigners of private student loans. Specifically, the bill: (1) prohibits a creditor from declaring a default or accelerating the debt of a private student loan on the sole basis of the death or bankruptcy of a cosigner to such a loan, and (2) directs loan holders to release cosigners from any obligation upon the death of the student borrower.
(Sec. 602) The bill amends the Fair Credit Reporting Act to allow a person to request the removal of a previously reported default regarding a private education loan from a consumer report if: (1) the lender chooses to offer a loan-rehabilitation program that requires a number of consecutive on-time monthly payments demonstrating renewed ability and willingness to repay the loan, and (2) the consumer meets those requirements. A consumer may obtain such rehabilitation benefits only once per loan. The GAO shall report on the implementation of these provisions.
(Sec. 603) The bill amends the Financial Literacy and Education Improvement Act to direct the Financial Literacy and Education Commission to establish best practices for teaching financial literacy skills at institutions of higher education.
Although the bill was designated as S,2155, where the “S” signifies that the final bill was a Senate legislative vehicle, much of the bill is comprised of legislative work of the House of Representatives. It was reported that approximately half of the bill – including ¾ of the regulatory relief provisions and nearly 90% of the capital formation provisions – originated in the House of Representatives. A number of the following House-originated provisions were included in S. 2155:
H.R. 2226, the “Portfolio Lending and Mortgage Access Act,” sponsored by Representative Andy Barr (R-KY).
H.R. 2255, the “Housing Opportunities Made Easier (HOME) Act,” sponsored by Representative David Trott (R-MI).
H.R. 2954, the “Home Mortgage Disclosure Adjustment Act,” sponsored by Representative Tom Emmer (R-MN).
H.R. 389, the “Credit Union Residential Loan Parity Act,” sponsored by Representative Ed Royce (R-CA).
H.R. 2948, the “S.A.F.E. Mortgage Licensing Act,” sponsored by Representative Steve Stivers (R-OH).
H.R. 1699, the “Preserving Access to Manufactured Housing Act of 2017,” sponsored by Representative Andy Barr (R-KY).
H.R. 3971, the “Community Institution Mortgage Relief Act of 2017,” sponsored by Representative Claudia Tenney (R-NY).
H.R. 2403, the “Keeping Capital for Local Underserved Communities Act of 2017,” sponsored by Representative Gwen Moore (D-WI).
H.R. 3093, the “Investor Clarity and Bank Parity Act,” sponsored by Representative Michael Capuano (D-MA).
H.R. 4725, the “Community Bank Reporting Relief Act,” sponsored by Representative Randy Hultgren (R-IL).
H.R. 1426, the “Federal Savings Association Charter Flexibility Act of 2017,” sponsored by Representative Keith Rothfus (R-PA).
H.R. 4771, the “Small Bank Holding Company Relief Act of 2018,” sponsored by Representative Mia Love (R-UT).
H.R. 5076, the “Small Bank Exam Cycle Improvement Act of 2018,” sponsored by Representative Claudia Tenney (R-NY).
H.R. 1457, the “MOBILE Act of 2017,” sponsored by Representative Scott Tipton (R-CO).
H.R. 2148, the “Clarifying Commercial Real Estate Loans Act,” sponsored by Representative Robert Pittenger (R-NC).
H.R. 2683, the “Protecting Veterans Credit Act of 2017,” sponsored by Representative John Delaney (D-MD).
H.R. 3758, the “Senior Safe Act of 2017,” sponsored by Representative Kyrsten Sinema (D-AZ).
H.R. 4258, the “Family Self Sufficiency Act,” sponsored by Representative Sean Duffy (R-WI).
H.R. 898, the “Credit Score Competition Act of 2017,” sponsored by Representative Ed Royce (R-CA).
H.R. 2121, the “Pension, Endowment, and Mutual Fund Access to Banking Act,” sponsored by Representative Keith Rothfus (R-PA).
H.R. 1624, the “Municipal Finance Support Act of 2017,” sponsored by Representative Luke Messer (R-IN).
H.R. 4546, the “National Securities Exchange Regulatory Parity Act,” sponsored by Representative Ed Royce (R-CA).
H.R. 1312, the “Small Business Capital Formation Enhancement Act,” sponsored by Representative Bruce Poliquin (R-ME).
H.R. 1219, the “Supporting America’s Innovators Act of 2017,” sponsored by Representative Patrick McHenry (R-NC).
H.R. 1257, the “Securities and Exchange Commission Overpayment Credit Act,” sponsored by Representative Gregory Meeks (D-NY).
H.R. 1366, the “U.S. Territories Investor Protection Act of 2017,” sponsored by Representative Nydia Velazquez (D-NY).
H.R. 1343, the “Encouraging Employee Ownership Act of 2017,” sponsored by Representative Randy Hultgren (R-IL).
H.R. 2864, the “Improving Access to Capital Act,” sponsored by Representative Kyrsten Sinema (D-AZ).
H.R. 4279, the “Expanding Investment Opportunities Act,” sponsored by Representative Trey Hollingsworth (R-IN).
H.R. 3221, the “Securing Access to Affordable Mortgages Act,” sponsored by Representative David Kustoff (R-TN).
H.R. 4790, the “Volcker Rule Regulatory Harmonization Act,” sponsored by Representative French Hill (R-AR).
H.R. 4028, the “PROTECT Act of 2017,” sponsored by Representative Patrick McHenry (R-NC).
H.R. 385, a bill to amend the Expedited Funds Availability Act to clarify the application of that Act to American Samoa and the Northern Mariana Islands, sponsored by Representative Aumua Amata Coleman Radewagen (R-AS).
November 8, 2018, Washington, D.C. – House Majority Leader Kevin McCarthy (CA-23) released the following statement on the Trump Administration’s announcement of new rules to protect religious freedom and ensure federal taxpayer dollars do not fund abortions:
“The three announcements by the Department of Health and Human Services today are clear victories in the fight for life and religious freedom.
“The rules affirm and strengthen the long-standing ban on federal funding for abortion, which is supported by a clear majority of Americans.
“HHS also announced it is finalizing the religious exemption to Obamacare’s contraceptive mandate. This rule will ensure religious believers and other moral objectors cannot be forced by the government to violate their most deeply held beliefs.
“These regulations add to the pro-life achievements of the Republican-led House, which has worked for years to secure religious freedom and the right to life.
“Republicans will continue to fight for a country where everyone has the rights and legal protection they deserve. Today’s announcements are a big step forward.”
Visit the HHS website for more information on these announcements.
See below for SEC and FINRA regulations that govern trading in securities quoted on OTC Link® ATS, the OTC Markets SEC registered Alternative Trading System, reprinted from the OTC Markets website.
The Monetary Policy and Trade Subcommittee will hold a hearing entitled “Evaluating the Effectiveness of the International Financial Institutions” at 9:15 a.m. on Wednesday, November 28, 2018, in Room 2128 of the Rayburn House Office Building.
OTC Markets Group has published a proposed amendment to the OTCQX Rules for U.S. Companies, and OTCQX Rules for U.S. Banks.
