ASA Applauds Chairman Atkins’ IPO Modernization Agenda, Urges FINRA to Reform Research Rules

WASHINGTON – The American Securities Association (ASA) today applauded Securities and Exchange Commission (SEC) Chairman Paul Atkins for advancing an agenda to modernize the IPO process and help more small and emerging businesses access the public markets. Today the SEC’s Small Business Capital Formation Advisory Committee meets to discuss IPO modernization.

“Chairman Atkins’ IPO agenda will help more American small businesses go public while giving working families, savers, and retirees the chance to create wealth as they grow,” said ASA President and CEO Chris Iacovella. “We believe that FINRA can build on that momentum by reforming its research rules, because too many small companies lack the analyst coverage investors need to buy their shares."

Research coverage is critical to a healthy IPO market. Without it, smaller public companies struggle to attract investors, build liquidity and grow. ASA urges FINRA to move forward with reforms to its equity and debt research rules (Rules 2241 and 2242), building on its review of rules that affect capital formation under Regulatory Notice 25-06. 

Earlier this year, ASA sent a letter to the SEC's annual small business forum outlining its recommendations regarding research rules and encouraging more companies to go public. Those reforms should streamline outdated disclosure and formatting requirements while preserving strong investor protections.

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The American Securities Association (ASA) represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.