The House Financial Services Committee has passed a bill aimed at relaxing the regulatory burden on small investment advice firms, ThinkAdvisor writes.

The Investment Adviser Regulatory Flexibility Improvement Act requires the SEC to revise how it defines “small business” and “small organization” when assessing its regulatory impact under the Investment Advisers Act of 1940, according to the bill sponsored by Rep. Gwen Moore, D-Wisc.

Under the proposal, the SEC would have to look at “alternative” factors such as the number of non-clerical employees at a firm.

“[T]he SEC would have to better assess the impact of its regulations on firms that are truly small businesses and give greater consideration to appropriate alternatives that would minimize unnecessary burdens on these firms,” Rep. Maxine Waters, D-Calif., read at the panel’s meeting yesterday from a letter submitted by the Investment Adviser Association, according to ThinkAdvisor.

In addition, the panel passed the National Senior Investor Initiative Act of 2018, requiring the SEC to form a task force aimed at protecting senior investors, the publication writes.

Rep. Maxine Waters (D) (Getty)

The task force would be charged with pinpointing issues between senior investors and financial services and product providers, assess potential changes in the SEC’s regulations in that regard and collaborate with state securities regulators and law enforcement as needed, according to ThinkAdvisor.