Sec Disclosure Effectiveness Testing Act

Floor Speech

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Mrs. WAGNER. Mr. Chair, I thank the gentleman from Michigan (Mr. Huizenga) for yielding his time. He has been a terrific leader on capital markets and has been serving in his capacity as we try and work hard for that low- and middle-income investor, that Main Street investor who is so important that we finally get some regulation and some guidance in place that is going to make sure that they are getting the information that is going to help them make good investment and savings decisions that are truly in the best interest of that consumer. The gentleman from Michigan (Mr. Huizenga), the ranking member of the Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets, is absolutely right.

Since my very first year in Congress 7 years ago, I have been fighting for that Main Street investor. I have been fighting to make sure that the best interest of that investor is in place.

This is not about Wall Street; it is about Main Street. It is about taking care of the low- and middle-income consumer. And the SEC has been dealing with this fiduciary rule and with the best interest standard for years and years and years.

Mr. Chairman, we have studied it. We have had countless comment periods. It has been litigated. The investor testing has been done. Years and years have gone into this moment where the SEC is finally ready and has, in fact, moved forward with the best interest standard.

The difficulty with this piece of legislation, H.R. 1815, is it is, frankly, just a political ploy, Mr. Chairman, a political ploy that is an attempt to stop the rule in its tracks, one that is going to take care of those that need the kind of support from their broker-dealer the most.

It is important that we finally have this issue back in the jurisdiction of the SEC where it belongs. It is time that this rule move forward and that we look out--all of us--for the best interest of our retail investors. Let's let this go forward and stop the political ploys.
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Mrs. WAGNER. Mr. Chairman, I rise in support of my amendment to H.R. 1815, which would apply the bill's additional investor testing requirements only to disclosure documents developed after January 21, 2021.

If enacted, this legislation would hinder the implementation of important rules designed to better protect Main Street investors, particularly, the SEC's Regulation Best Interest rule. This rule has been in effect since September 10, 2019, but it has a compliance date of June 30, 2020.

If further and ongoing testing were required, it would onerously roll back and delay further--after 7 years of testing, debate, deliberation, comment periods, litigation, it would only roll back and further delay, Mr. Chairman, all of the SEC's efforts to better protect those retail investors.

The bottom line is that this legislation is duplicative for rules already under consideration. The SEC has already conducted extensive investor testing of the proposed Form CRS, a component of the Regulation Best Interest rule. This is nothing, Mr. Chairman, but a political ploy, rope-a-dope, more neglect in not doing the work of the people. It does not serve those low- and middle-income investors, those constituents of mine in Missouri's Second Congressional District.

It makes no sense to go back and conduct repetitive investor testing, leaving broker dealers and their clients--again, there are low- and middle-income investors--without a uniform best interest standard.

That is why I ask all of my colleagues to support this commonsense amendment, and if it is not agreed to, to oppose the underlying bill, H.R. 1815, that does nothing but delay and disserve the people that we should be working hard to protect, those low- and middle-income retail investors that are a part of our beautiful and wonderful Main Street districts.
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Mrs. WAGNER. Mr. Chairman, I yield such time as he may consume to the gentleman from Michigan (Mr. Huizenga), the ranking member of the Investor Protection, Entrepreneurship, and Capital Markets Subcommittee, my friend, to speak in support of the amendment and in opposition to the underlying bill.

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Mrs. WAGNER. Mr. Chairman, let me just say, I have been working on this issue and fighting for the retail investors for all 7 of my years here in Congress with several pieces of legislation to bring this to fruition and to always, always hold that retail investor in the best interest to make sure that we are taking care of them and giving them the best advice, the best access, the best cost, but most of all that we secure their savings and their retirement investment and do everything we can to serve in their best interests. And that is why we must bring this after 7 long years to a close.

It is time that we stop playing rope-a-dope with duplicative rules that have already been under consideration and by conducting extensive investor testing that has already been done. The SEC is the absolute body of jurisdiction. They must harmonize with the Department of Labor, and have, and now we have got a short, two-form page. We have got disclosures and titles that are clear that is serving the best interests of our constituents.

I would ask everyone to consider my amendment to H.R. 1815, and if it is not agreed to, to oppose the underlying bill.

Mr. Chair, I yield back the balance of my time.

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Mrs. WAGNER. Mr. Chairman, I demand a recorded vote.

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