Securities Research Modernization Act

Overview: HR 3672, "Securities Research Modernization Act", was introduced on June 02, 2025. The bill has been reported (Amended) by the Committee on Financial Services, with H. Rept. 119-204.

Purpose and Intent: The main purpose of the Securities Research Modernization Act is to update regulations and remove barriers to the production and distribution of independent securities research. The bill aims to enhance investor access to high-quality, unbiased research and analysis.

Key Provisions:
- Exempts broker-dealers from certain restrictions on the provision of research services to institutional investors
- Directs the Securities and Exchange Commission (SEC) to revise rules to facilitate the unbundling of research services from trading commissions
- Requires the SEC to study the impact of research payment and distribution practices on the quality and availability of research

Affected Parties and Impacts: The bill would primarily benefit institutional investors by improving their access to independent securities research. Broker-dealers and research providers would also be impacted, as they would have more flexibility in the production and distribution of their research services.

Procedural and Timeline Considerations: HR 3672 has been reported (Amended) by the Committee on Financial Services and is now awaiting further consideration by the full House of Representatives. The next step would be for the bill to undergo potential floor votes and, if passed, move to the Senate for further legislative action.