The Securities and Exchange Commission today proposed amendments to its rules and forms governing registered offerings that are designed to increase efficiency, flexibility, and cost savings for public companies while maintaining robust investor protections. The Commission also proposed rule amendments to simplify its public company reporting framework and better calibrate disclosure obligations with a company’s size and maturity.
The United States’ dynamic public securities markets offer benefits to issuers and investors alike. Issuers can raise capital through the public markets on more favorable terms as compared to private markets, and investors benefit from the increased transparency and liquidity provided by the public markets.
Compounding regulatory requirements over recent decades, however, have corresponded with a decrease in the number of public companies. The proposed amendments – together with the recently proposed optionality for semiannual interim reporting and other forthcoming rule proposals – represent important steps toward incentivizing companies to go and stay public.
“Today, the Commission proposed two rulemakings that serve as the foundation for my agenda to Make IPOs Great Again. These proposals build upon the legislative and regulatory concepts that have proven successful in the past and aim to extend that success to more companies – particularly small and mid-sized companies – and incentivize them to go and stay public,” said SEC Chairman Paul S. Atkins in a statement . “Today’s proposed rulemakings are among the first important steps toward transforming the SEC’s regulatory framework for public companies.”