Promoting Transparent Standards for Corporate Insiders Act

Floor Speech

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Ms. VELAZQUEZ. Mr. Speaker, I rise in support of H.R. 624, the Promoting Transparent Standards for Corporate Insiders Act, bipartisan legislation sponsored by Chairwoman Waters and Ranking Member McHenry.

Mr. Speaker, our Nation's financial markets are safer and more efficient when they are transparent.

Unfortunately, those that participate in insider trading damage the structure and integrity of our financial markets by engaging in practices outside of the public's view, profiting on information that is only known to a select few.

This nefarious practice damages ordinary, hardworking Americans who invest in pension funds, 401(k)s, mutual funds, and other retirement vehicles. As lawmakers, we must remain ever vigilant and seek to root out this illegal practice before it starts.

Currently, SEC regulations permit corporate insiders to evade insider trading rules by allowing them to adopt multiple trading plans and make select changes to their predetermined trading plans.

H.R. 624 closes this loophole by requiring the SEC to study and analyze the effectiveness of its current insider trading rules while also considering any rule change's impact on capital formation and a company's willingness to go public. Further, the bill requires the SEC report to Congress on its finding and draft rules consistent with the results.

This carefully crafted piece of legislation is an important step to closing a loophole in our Nation's insider trading laws.

Mr. Speaker, I want to take this opportunity to commend Chair Waters and Ranking Member McHenry for working in a bipartisan manner on this bill. I hope it is the first of many bipartisan bills we can bring to the floor from the Financial Services Committee in the 116th Congress.

Mr. Speaker, I urge the speedy adoption of this important measure.

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