Wednesday, April 9, 2014
WASHINGTON, D.C. – Congressman Robert Hurt (R-Virginia) delivered the following remarks at today's Financial Services Committee hearing entitled, "Legislative Proposals to Enhance Capital Formation for Small and Emerging Growth Companies." Video is available below, as well as text.
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"Mr. Chairman, I want to thank you for holding today's hearing on the legislative proposals to further enhance capital formation. I thank all of the witnesses for being here, as well. This subcommittee's work on the issue of capital access for small and emerging growth companies has resulted in the bipartisan passage of numerous bills in the full Committee and in the House. I look forward to their enactment so we can continue to expand upon the successes of the JOBS Act we have witnessed over the last two years.
"Even with those successes, I continue to hear from companies, both public and private, in my district about the impacts of outdated and burdensome regulations on their ability to access capital. As our markets and the needs of its participants continue to evolve, it is necessary for our regulatory structure to reflect those new realties.
"Today, I especially look forward to testimony from our witnesses regarding Chairman Garrett's Disclosure Modification and Simplification Act and reforming our corporate disclosure regime. I am encouraged by the comments by a majority of the commissioners at the SEC, including Chair Mary Jo White, about the need for the SEC to engage in a comprehensive review of our disclosure requirements. They have noted that disclosure overload is having negative impacts on investors, public companies, and the SEC itself.
"Fostering capital formation in our capital markets requires consistently reliable information on public companies; however, too much information for the sake of information itself can create inefficiencies and confusion, especially among investors unable to make informed decisions. Streamlining our disclosure regime to better reflect the SEC's three missions will lead to benefits for both businesses and investors.
"I appreciate this Committee's continued focus on ensuring that our small businesses and startups have the ability to access the necessary capital in order to innovate, expand, and create the jobs that our local communities need. I look forward to the testimony of our witnesses and thank you again for your appearance before the subcommittee.
"Thank you, Mr. Chairman. I yield back the balance of my time."