Financial CHOICE Act 2.0: Implications for the SEC and Capital Markets

25 April 2017
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Key takeaways

  • This Wednesday the Financial Services Committee of the U.S. House of Representatives will hold a hearing to discuss an amended and updated version of the Financial Choice Act (“CHOICE Act 2.0”). If enacted, the legislation would repeal or modify several key provisions of the Dodd-Frank Act.
  • CHOICE Act 2.0 includes several new provisions that would reform SEC enforcement and rulemaking authority, prohibit “co-conspirators” from receiving SEC whistleblower awards, and further enhance requirements for SEC reporting to Congress on enforcement activities.
  • Proposed substantive changes also include modifications of securities laws governing capital raising and ongoing reporting requirements.
  • There appears to be sufficient support by the Republican majority to pass CHOICE Act 2.0 in the House, but the bill’s fate in the Senate is less certain given Democratic opposition. We will continue to monitor legislative and regulatory developments related to CHOICE Act 2.0 as the proposed legislation moves through Congress.