Thursday, May 16, 2013

House FSC Approves Extending SEC Registration Thresholds to Thrifts

The House Financial Services Committee approved legislation to extend to savings and loan institutions the JOBS Act shareholder thresholds for SEC registration and deregistration. Introduced by Rep. Steve Womack (R-Ark), the Holding Company Registration Threshold Equalization Act, H.R. 801, corrects the inadvertent omission of thrifts from the new shareholder thresholds contained in the JOBS Act and thereby effects Congressional intent.

Currently, Section 601 of the JOBS Act raises the number of shareholders permitted to invest in a community bank before triggering SEC reporting and registration from 499 to 1999. It also requires termination of a security registration in the case of a bank or bank holding company if the number of holders of a class of security drops below 1200. H.R. 801 would extend these shareholder thresholds to savings and loan associations.

Rep. Ann Wagner (R-Mo), a co-sponsor of the legislation, noted that these JOBS Act provisions lift outdated burdens off of small lenders and help increase capital raising. She noted that many community banks have already taken advantage of the new shareholder threshold provisions. Thrifts were intended to be included in the new thresholds, she said, since they are regulated like banks and are subject to the same reporting requirements.

Committee Ranking Member Maxine Waters (D-Cal) expressed strong support for H.R. 801, noting that it corrects an inadvertent omission in the JOBS Act. Congress neglected to include thrifts in the JOBS Act, she noted, adding that thrifts are subject to mandatory public reporting requirements.
LegislativeActivity: JOBSAct