Rep. Brad Sherman, a California Democrat, will maintain his role as chairman of the House Financial Services Committee’s influential Subcommittee on Investor Protection, Capital Markets, and Entrepreneurship, the committee announced on January 26, 2021.
In a statement, Sherman said he will continue to work with committee leadership “to both reverse the harm done to our regulatory framework by the Trump Administration, and to pursue an agenda of strong investor protections, improved transparency and public company disclosures, and increased access to capital for small companies.”
Sherman, a CPA, took the helm at Capital Markets in late 2019 to replace outgoing chair Rep. Carolyn Maloney of New York, who left the role to take over the chair of the Oversight and Reform Committee following the death of its chairman, Rep. Elijah Cummings of Maryland.
Sherman, in his time chairing the panel, has been a vocal critic of the cryptocurrency industry, the FASB’s credit loss rules, and of the failure of U.S.-listed Chinese companies to comply with PCAOB audit inspection requirements under the Sarbanes-Oxley Act of 2002.
He sponsored companion legislation in the House to the Senate’s Holding Foreign Companies Accountable Act, under which companies whose audits are not subject to U.S. oversight will be delisted after three consecutive non-inspection years. The bill also mandates companies establish that they are not controlled by a foreign government.
The House ultimately passed the Senate’s version of the bill (S. 945) in early December. Former President Donald Trump later signed it into law.
Also on January 26, the Financial Services Committee announced that Rep. Ed Perlmutter of Colorado would chair the Subcommittee on Consumer Protection and Financial Institutions; Rep. Emanuel Cleaver of Missouri would chair the Subcommittee on Housing, Community Development and Insurance; Rep. Jim Himes of Connecticut would chair the Subcommittee on National Security, International Development and Monetary Policy; Rep. Joyce Beatty of Ohio would chair the Subcommittee on Diversity and Inclusion; and Rep. Al Green of Texas would chair the Subcommittee on Oversight & Investigations.
Perlmutter replaces Rep. Gregory Meeks of New York as chair of the Consumer Protection panel, Cleaver replaces former Rep. Lacy Clay of Missouri on the Housing subcommittee, and Himes replaces Cleaver as head of the National Security subcommittee.
This article originally appeared in the January 27, 2021 edition of Accounting & Compliance Alert, available on Checkpoint.
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