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ASA Applauds SEC Action to Reduce Burdens on Small Issuers

Today’s common sense changes show that the Commission can modernize rules to promote small business capital formation while maintaining important investor protections



WASHINGTON – The American Securities Association (ASA) today applauded the Securities and Exchange Commission (SEC) for adopting amendments modernizing Sarbanes-Oxley requirements to help reduce burdens on small issuers.


“We want to thank Chairman Clayton for his leadership in reducing the regulatory burden on small issuers, this will help more American businesses to go public and stay public,” said ASA CEO Chris Iacovella. “Today’s common sense changes show that the Commission can modernize rules to promote small business capital formation while maintaining important investor protections.”

The adopted amendments better tailor the accelerated and large accelerated filer definitions by exempting issuers that have less than $100 million in revenue from the 404(b) auditor attestation requirement, helping more Emerging Growth Companies (EGCs) to access the capital markets.


ASA called for the SEC to take this action in its 2018 IPO report outlining recommendations to help more companies go and stay public. There has been broad agreement that certain provisions of the Sarbanes-Oxley Act have discouraged companies from entering the public markets while doing little to protect investors.



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ASA’s regional financial services companies work in communities across the country to create jobs, grow the economy, and increase prosperity for all Americans. The ASA exclusively represents the capital market and private client interests of its members and seeks to promote free market principles making it easier to access financial advice and capital. ASA members help Americans save for retirement, provide Main Street businesses with capital to grow, and advise hardworking Americans how to create and preserve wealth. For the latest updates follow @AmerSecurities and learn more at http://americansecurities.org/.

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