SEC's Crenshaw & Lee Vote Against Direct Listings
The Commissioners are right to highlight the importance of a traditional underwriter as a crucial investor protection throughout the IPO process.
WASHINGTON – The American Securities Association (ASA) today applauded Securities and Exchange (SEC) Commissioners Caroline Crenshaw and Allison Lee for standing up to protect America’s investors by voting against a proposed rule approving the use of direct listings in primary offerings.
“ASA applauds Commissioners Crenshaw and Lee for standing up to protect America’s investors over the interests of Wall Street and Silicon Valley,” said ASA CEO Chris Iacovella. “The Commissioners are right to highlight the importance of a traditional underwriter as a crucial investor protection throughout the IPO process. While we are disappointed that one of this Commission’s final acts is a massive regulatory rollback that swings the investor protection pendulum in the wrong direction, we look forward to working with a new SEC Chair to quickly reverse this misguided policy and put America’s investors first.”
Last week, ASA called on the SEC to reject this proposal and outlined concerns regarding the Commission’s lack of transparency which threatens the democratic process, its action to circumvent the will of Congress, and its disregard for the Administrative Procedure Act. In September, ASA sent a letter to the Commission reiterating its investor protection concerns and highlighted how Chinese companies will use the direct listings process to defraud American investors and retirement savers.
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/.