UPDATE 2-U.S. House panel approves, amends investor bill

* Shareholder "proxy access" amendment added to bill

* Small company SOX Section 404 exemption added

* Bill would double SEC's budget over five years

* Broker, adviser client-care rules would level (Adds Kanjorski, Garret, Roper comments, bill details, byline)

By Kevin Drawbaugh

WASHINGTON, Nov 4 (Reuters) - A bill to boost investor protections and beef up the U.S. Securities and Exchange Commission by strengthening its power and doubling its budget was approved on Wednesday by a congressional panel.

The bill included two controversial amendments that would pave the way to allow shareholders to nominate corporate directors and exempt small companies from certain reporting requirements.

The House of Representatives Financial Services Committee voted 41-28 in favor of the bill to order the SEC to subject brokers and investment advisers to the same standards of client-care, while doubling the SEC's budget over five years and strengthening its law enforcement powers.

The measure is part of a broad effort to tighten bank and capital market regulation. It must go next to the full House for a vote. Its outlook in the Senate was uncertain.