June 28, 2018

Crapo Statement at Corporate Governance Hearing

WASHINGTON – U.S. Senator Mike Crapo (R-Idaho), Chairman of the U.S. Senate Committee on Banking, Housing and Urban Affairs, delivered the following remarks at a hearing entitled “Legislative Proposals to Examine Corporate Governance.”
The text of Chairman Crapo’s remarks, as prepared, is below.
“Today’s hearing will focus on several legislative proposals to improve corporate governance.
“As with Tuesday’s hearing on capital formation proposals, I intend to work with Ranking Member Brown and with other Senators on the Banking Committee to identify and move legislative proposals through the Senate.
“Although some of the bills which we will be discussing today have also been discussed and considered in the House, most have not.
“Today’s hearing will mark a first step for those we have not yet considered or were recently introduced.
“Among other things, the bills that we will discuss today would expand the definition of accredited investor; shorten the Schedule 13D filing window and increase disclosure of short positions; require FINRA to create a relief fund to cover unpaid arbitration awards to investors; draw attention to cybersecurity experience at the board level; address concerns that a gap exists between the time a firm learns of material nonpublic information and its disclosure; and highlight the unique challenges to rural area small businesses.
“Finally, several members have expressed interest in addressing the role of proxy advisory firms, and we will discuss a bill which the House has already considered and passed.
“I look forward to hearing from our witnesses on these legislative proposals, and whether there are ways to modify these bills to gain bipartisan support.
“We have received some initial feedback on these bills, which will be entered into the record.”