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Better Investor Information: SEC Must Test New Rules

This act requires the Securities and Exchange Commission (SEC) to test how ordinary investors understand new disclosure rules. This aims to ensure that investment information is clear and helps in making better financial decisions. As a result, citizens will have access to more understandable data before deciding to buy or sell securities.
Key points
The SEC must conduct tests with retail investors (e.g., surveys, interviews) before implementing new rules on investment disclosures.
Tests will assess if information is understandable and useful when choosing a financial advisor, evaluating services, or making decisions to buy or sell securities.
Test results will be publicly available, and the SEC will be required to consider public comments.
The act also mandates the SEC to test existing rules to ensure their effectiveness for investors.
Special attention will be given to challenges faced by investors aged 65 and older.
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Expired
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Additional Information
Print number: 117_HR_8462
Sponsor: Rep. Casten, Sean [D-IL-6]
Process start date: 2022-07-21
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

SEC Disclosure Effectiveness Testing Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_8462.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2022-07-21.

What are the main provisions?

Key points include:

  • The SEC must conduct tests with retail investors (e.g., surveys, interviews) before implementing new rules on investment disclosures.
  • Tests will assess if information is understandable and useful when choosing a financial advisor, evaluating services, or making decisions to buy or sell securities.
  • Test results will be publicly available, and the SEC will be required to consider public comments.
  • The act also mandates the SEC to test existing rules to ensure their effectiveness for investors.
  • Special attention will be given to challenges faced by investors aged 65 and older.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Casten, Sean [D-IL-6].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Financial Services.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Economy