Investor Clarity and Bank Parity Act

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3093) to amend the Volcker Rule to permit certain investment advisers to share a similar name with a private equity fund, subject to certain restrictions, and for other purposes.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and to include extraneous material on the bill.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H.R. 3093, the Investor Clarity and Bank Parity Act. I would like to start by thanking my colleague from Massachusetts (Mr. Capuano) for his work on this important bipartisan legislation.

This bill makes a modest amendment to section 619 of the Dodd-Frank Act, also known as the Volcker rule, by correcting an unintended consequence that occurred during implementation.

When the regulators issued the final rule to the Volcker rule, they imposed severe limitations on the ability of bank holding companies and their affiliates, including investment advisers, to sponsor hedge funds and private equity funds, also known as covered funds. As a result, a covered fund cannot use the name of a sponsor.

For example, if XYZ investment adviser is an affiliate of XYZ bank and sponsors a real estate fund, that real estate fund could not be named XYZ real estate fund. Not only is such a restriction at odds with industry practice, it reduces transparency and confuses investors about who is actually managing a covered fund.

H.R. 3093 eliminates this prohibition and simply allows an affiliate of a bank holding company, such as an investment adviser, to share a similar name with a private equity fund. In doing so, this legislation clarifies the original intent of the Volcker rule and, most importantly, helps investors have better insight into who is actually managing a covered fund.

Finally, H.R. 3093 is consistent with recommendations provided by the Treasury Department in its recent report on banks and credit unions.

I want to again thank my friend from Massachusetts for his work on this bill. The Volcker rule is in need of additional reforms. I appreciate that Mr. Capuano has started on the naming issue and that our colleagues on the Senate Banking Committee have included modest Volcker reforms in Chairman Crapo's regulatory relief legislation.

It is my hope, however, that this is the beginning of the conversation and that we can work again in a bipartisan, bicameral fashion to pass additional Volcker reforms, such as the designation of a single regulator to work with other regulators. In the meantime, I urge my colleagues to support this commonsense legislation today.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I have no further requests for time, and I yield back the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I believe the gentleman from Missouri has stated everything that needs to be said. This is a simple bill that is a technical amendment to the Volcker rule that I strongly support. I know that many others have opposition to that. This is a minor change.

When you do a bill like Dodd-Frank, or any major bill, there are always things you make a mistake on and that you didn't see coming. This is one of them.

It is very simple. This simply allows a company to use names that they have been using forever. That is really all it is. I appreciate the gentleman's willingness and the committee's willingness to hear this simple bill.

Mr. Speaker, I urge passage of this bill, and I yield back the balance of my time.