Senate Bill Gives Sarbanes-Oxley Exemption to Small Banks
Banks holding less than $1 billion in assets could receive an exemption from the auditor attestation requirements of Section 404(b) under the Sarbanes-Oxley Act of 2002. Under S. 1962, the Community Bank Access to Capital Act of 2017, the proposed Senate bill frees smaller banks from the more complicated and expensive reforms under Sarbanes-Oxley. S. 1962 also requires public companies to hire an external auditor to attest to management’s internal controls over financial reporting. The bill’s co-sponsor, Senator Mike Rounds (R-S.D.), stated the proposed measure would promote growth among community banks and help them support their communities. Section 404(b) advocates. Read More.
Companies Can Submit Draft Registration Review Statements for IPOs
The Securities and Exchange Commission (“SEC”) has announced that effective July 10, its Division of Corporation Finance (“Corp Fin”) will allow companies to present draft registration statements regarding their initial public offerings (“IPOs”) for non-public review. This includes IPOs and most offerings made during the first year after an organization enters the public reporting system. Corp Fin’s decision gives companies additional flexibility to design their offering. The non-public review following the IPO decreases its likelihood of being exposed to market fluctuations, which could negatively impact the offering process and public shareholders. Requiring a public filing period before the marketing launches. Read More.