FSI Successfully Lobbies Against H.R. 757, Equitable Treatment of Investors Act
August 1, 2012
On August 1, the House Financial Services Subcommittee on Capital Markets and GSEs removed from its scheduled mark-up, H.R. 757, the Equitable Treatment of Investors Act (H.R. 757). H.R. 757 is authored by Rep. Scott Garrett (R-NJ) and would have modified the way payouts are made from a fund managed by the Securities Investor Protection Corporation (SIPC) to insure coverage for the victims of the Bernie Madoff and Allen Stanford Ponzi scheme. While sympathetic to the victims, the bill would have put broker-dealers and financial advisors that had nothing to do with the Madoff Ponzi scheme on the hook for the fanciful account balances reflected on the investor’s final account statement. The bill also would have politicized SIPC by removing it from key coverage decisions and trustee appointments.. FSI successfully advocated for the bill’s removal and hopes that Congress will focus on reforms to SIPC that protect investors without reducing access to financial advice, products and services.
For more information, please contact Ryan Cooperman.