Sherman, Wagner Lead Bipartisan Colleagues in Urging S.E.C. to Withdraw Proposal Harmful to Investors & Retirement Savers
WASHINGTON, D.C. – Congressman Brad Sherman (CA-32), senior member of the House Financial Services Committee and Ranking Member of the Subcommittee on Capital Markets, and Congresswoman Ann Wagner (MO-02), Chairwoman of the Subcommittee on Capital Markets, were joined by thirty-six of their colleagues on both sides of the aisle in a letter to the U.S. Securities and Exchange Commission (SEC) urging the withdrawal of a regulatory proposal regarding mutual funds that, if finalized, adversely affect the retirement accounts and pensions of the more than 100 million Americans who invest in mutual funds.
"I am pleased to have spoken personally about these concerns with SEC Chair Gensler on Tuesday," said Congressman Sherman. "I'm pleased that many of my colleagues joined me in this effort to urge the SEC to reevaluate this proposal and ensure that any new rules are made with the best interests of all investors in mind."
Currently, all mutual fund investors who place orders by 4 pm ET will receive that day's price of the mutual fund. The SEC's proposal would change that norm by implementing a hard close on mutual funds orders, requiring retail investors to submit their orders well in advance, to receive that days' price – a significant disadvantage for those living in the Pacific Time zone who may have to submit orders as early as 9 am ET to receive that day's price.
The SEC has received bipartisan opposition to this proposal from Congress. Congressman Brad Sherman and Congresswoman Ann Wagner, along with the tax "four corners" Chairman Jason Smith, Ranking Member Richard E. Neal, Chairman Ron Wyden, and Ranking Member Mike Crapo, have previously sent letters to the SEC expressing concerns with the proposal's impact on retirement savers and retail investors.
Members who have signed onto today's letter: Blaine Luetkemeyer (MO-03), Gregory Meeks (NY-05), Bill Huizenga (MI-04), David Scott (GA-13), Andy Barr (KY-06), Emanuel Cleaver (MI-05), Frank D. Lucas (OK-03), Bill Foster (IL-11), Roger Williams (TX-25), Joyce Beatty (OH-03), Bryan Steil (WI-01), Juan Vargas (CA-52), Dan Meuser (PA-09), Josh Gottheimer (NJ-5), Andrew R. Garbarino (NY-02), Vicente Gonzalez (TX-34), Young Kim (CA-40), Steven Horsford (NV-04), Mike Flood (NE-01), Wiley Nickel (NC-13), Michael V. Lawler (NY-17), Brittany Pettersen (CO-07), Zach Nunn (IA-03), Linda T. Sanchez (CA-38), Erin Houchin (IN-09), Jimmy Panetta (CA-19), Gregory F. Murphy (NC-03), Joseph Morelle (NY-25), Claudia Tenney (NY-24), Brad Schneider (IL-10), David Kustoff (TN-08), Don Beyer (VA-08), Carol Miller (WV-01), Chris Pappas (NH-01), Ron Estes (KS-04), Robert "Rob" Menendez (NJ-08).
To read the full letter, click here.
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