H.R. 3959 — what changed

Protecting Private Job Creators Act

From Introduced in House to Reported in House. 1 section amended and 1 removed between Introduced in House and Reported in House.

Sec. 2 Exception relating to quotations of fixed-income securities

(a)

added In general— Section 240.15c2–11 of title 17, Code of Federal Regulations, shall not apply with respect to quotations of fixed-income securities.

removed Congress finds the following:

(b)

changed Fixed-Income security defined— On September 16, 2020, the Securities and Exchange Commission adopted a final rule amending Rule 15c2–11 under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) which addresses disclosures in In this section, the OTC markets and imposes requirements upon broker-dealers who publish quotations in such markets.term fixed-income security means—

(1)

added any note, bond, debenture, certificate of deposit for a security, certificate of deposit, asset-backed security, or any other evidence of indebtedness; and

(2)

added any security described under paragraph (1) that is convertible, with or without consideration, into any equity security or carrying any warrant or right to subscribe to or purchase any equity security.

(2)

removed Rule 15c2–11 was promulgated in 1971, and has generally been understood to apply to OTC equity markets since that time.

(3)

removed The amendments to Rule 15c2–11 were based on the economic analysis of OTC equity markets.

(4)

removed The fixed-income markets are different in structure and function than OTC equity markets.

(5)

removed The fixed-income markets are critical to the ability of thousands of businesses’ ability to raise capital.

(6)

removed Rule 144A requires that issuers make their financial and operational information available to qualified institutional buyers upon request.

(7)

removed Following No-Action Letters issued on September 24, 2021, and December 16, 2021, the Securities and Exchange Commission indicated that it would apply Rule 15c2–11 to fixed-income markets in a manner that made significant changes to long-standing regulatory requirements, without a rulemaking process, without analysis of the costs and benefits of the action, and without regard for the input of the public. According to a subsequent No-Action Letter, which was issued on November 30, 2022, the Securities and Exchange Commission will apply Rule 15c2–11 to fixed-income securities sold pursuant to Rule 144A after no-action relief expired on January 4, 2025.

(8)

removed On October 30, 2023, the Securities and Exchange Commission exempted fixed-income securities sold pursuant to Rule 144A from Rule 15c2–11 compliance, finding doing so is “appropriate in the public interest, and consistent with the protection of investors”.

(9)

removed On November 22, 2024, the Securities and Exchange Commission granted exemptive relief from Rule 15c2–11 compliance to all fixed-incomes securities that meet certain criteria.

Sec. 3 Exception relating to quotations of fixed-income securities

removed

(a)

removed In general— Section 240.15c2–11 of title 17, Code of Federal Regulations, shall not apply with respect to quotations of fixed-income securities.

(b)

removed Fixed-Income security defined— In this section, the term fixed-income security means—

(1)

removed any note, bond, debenture, certificate of deposit for a security, certificate of deposit, asset-backed security, or any other evidence of indebtedness; and

(2)

removed any security described under paragraph (1) that is convertible, with or without consideration, into any equity security or carrying any warrant or right to subscribe to or purchase any equity security.