RECENT VOTES

The Limiting Investor Protections Act

On April 6, 2017 the House considered H.R. 1219, the Supporting America’s Innovators Act of 2017. This legislation amends the Investment Company Act of 1940, which, in part, defines which companies must register as investment companies with the Securities and Exchange Commission (SEC). The Act in turn triggers a series of investor protections. The Act contains a number of exemptions to the registration and investor protection requirements, one of which is for companies whose outstanding securities are owned by no more than 100 “accredited investors,” people who are considered sophisticated enough to be able to operate in the unregistered market without investor protections. This bill would expand the exemption to 250 persons who could purchase no more than $10 million in securities per issuer. You will notice that the vote was a bipartisan one. The problem I have with H.R. 1219 is that it continues down the path of expanding the scope of unregistered investing that occurs without sufficient investor protections. The category of “accredited investor” is one that Republicans are consistently trying to loosen and I am concerned that H.R. 1219 does just that. I voted NO. H.R. 1219 passed and the entire vote is recorded below:

  YEA NAY PRESENT NOT VOTING
REPUBLICAN

232

1

0

3

DEMOCRAT

185

2

0

6

TOTAL

417

3

0

9

MASSACHUSETTS
DELEGATION

6

2

0

1