Deregulatory Bills Clear the House Financial Services Committee
On October 12, the House Financial Services Committee approved almost two dozen financial deregulation bills. The measures included bills that allow more investors to participate in private stock offerings, expand the JOBS Act, and update the Dodd-Frank Act’s systemic risk designation process for banking institutions. Several of the House-approved bills include the following: The Fostering Innovation Act of 2017 expands small company exemptions from the auditor attestation requirements of the Sarbanes-Oxley Act of 2002. The bill exempts a company from Section 404(b) compliance for an additional five years after losing its emerging growth company status, provided that the company remains. Read More.
Topics: Acquisitions, and Brokerage Simplification Act, Deregulation, Dodd-Frank Act, Encouraging Public Offerings Act, Fair Investment Opportunities for Professional Experts Act, Fostering Innovation Act, House Financial Services Committee, JOBS Act, Market Data Protection Act, Micro Offering Safe Harbor Act, sales, Sarbanes-Oxley Act "SOX", Securities Act of 1933, Securities and Exchange Commission "SEC", Small Business Mergers, Systemic Risk Designation Improvement Act, Systemically Important Financial Institution "SIFI", Taking Account of Institutions with Low Operation Risk Act
Montana and Massachusetts Officials to Challenge Regulation A+
In federal appeals court later this month, state securities regulators and the Securities and Exchange Commission (“SEC”) will square off over the agency’s Regulation A+ amendments under the JOBS Act. Montana and Massachusetts officials seek to overturn the capital formation rule, contending it overlaps state management of certain securities offerings. Issued in June 2015, Release No. 33-9741, Amendments to Regulation A, the rules increase the amount companies can raise (up to $50 million) in transactions that are compared frequently to small-scale initial public offerings, but have lesser disclosure and accounting requirements than more traditional registered offerings. The final rules allowed companies to. Read More.
GATE Global Impact Petitions for Change to Anti-Fraud Rule
Last month, GATE Global Impact Inc., filed a rulemaking petition asking the Securities and Exchange Commission (“SEC”) to amend Rule 15c2-11 under the Securities Exchange Act of 1934. The New York-based electronic marketplace says the decades-old rule against microcap fraud must be changed to account for what it believes to be an unintentional consequence of the JOBS Act. Per its petition, GATE predicted that SEC adoption of the JOBS Act’s “Regulation A+” capital formation rules would increase the number of securities bound by Rule 15c2-11. Without making changes to the “piggyback” exception to Rule 15c2-11, GATE insisted that the rise. Read More.
Chamber of Commerce Seeks Additional Information on PCAOB’s Related Parties Standard
Citing lack of analysis in the Public Company Accounting Oversight Board’s (“PCAOB”) related parties standard concerning the financial impact on emerging growth companies and their auditors, the U.S. Chamber of Commerce (“the Chamber”) has asked the U.S. Securities and Exchange Commission (“SEC”) to send Release No. 2014-002, Auditing Standard (AS) No. 18—Related Parties, back to the PCAOB for additional details. In a comment letter to the SEC on July 28th, the Chamber’s sentiments reflect their belief that the PCAOB hasn’t been thorough in assessing the standard’s costs on emerging growth companies. Issued in June and awaiting SEC approval, AS 18. Read More.
Corp Fin to Review Disclosure Rules & Cybersecurity Protection in Fiscal 2015
Outlining next year’s policy objectives, Report on Objectives – Office of the Investor Advocate has been released by the U.S. Securities and Exchange Commission’s (“SEC”) Office of the Investor Advocate (“the Office”). Published on June 24th, the report details two major projects the Office will work on during fiscal year 2015. The projects include assisting the SEC’s Division of Corporation Finance (“Corp Fin”) revise disclosure requirements and reviewing cybersecurity for investor protection. Mandated by the JOBS Act, the SEC’s Mary Jo White considers the review of disclosure requirements in Regulation S-K a high priority. Using recommendations from the Report on. Read More.
Topics: Compliance, Cybersecurity, disclosure, Division of Corporation Finance "Corp Fin", Financial Industry Regulatory Authority "FINRA", Investor Protection, JOBS Act, Mary Jo White, Office of the Investor Advocate, Regulation S-K, U.S. Securities and Exchange Commission "SEC"