ASA Applauds SEC Forum on Modernizing the IPO Process and Expanding Access to Public Capital

WASHINGTON – The American Securities Association (ASA) today applauded the Securities and Exchange Commission's (SEC) for hosting "Rethinking the Rulebook: Modernizing the IPO Process and Access to Public Capital" — a discussion designed to examine ways to support public companies in raising capital, modernize the IPO process, and improve access to public markets.

"Chairman Atkins' continued focus on the burden of years of accretive rulemaking that has produced reams of paperwork without improving investor protection is well placed," said ASA President and CEO Chris Iacovella. "We support the Commission returning to its core mission by incentivizing IPOs through streamlined disclosure, and reevaluating the entire shareholder proposal process."

ASA urges the Commission to act on three priority areas: 

Improve Research Coverage for Pre-IPO and Small Public Companies

• Permanently permit broker-dealers to receive hard-dollar payments for research without registering as investment advisers.

• Complete the reconsideration of the Global Research Analyst Settlement.

  
  

Tailor Regulations for Small Public Companies

• Extend the EGC on-ramp from five to ten years and raise the revenue threshold to $2 billion.

• Expand eligibility for the Form S-3 shelf registration to reduce the cost of follow-on offerings.

• Finalize proposals to simplify filer status categories and extend EGC and smaller reporting company accommodations more broadly.

  
  

Protect Shareholders Against Political Activism

• Close the Rule 14a-4 loophole that activists are now exploiting to circumvent the shareholder proposal system.

• Determine whether the SEC has the legal authority to regulate shareholder proposals at all and move toward returning that authority to state law where it belongs.

• Establish strong oversight of proxy advisory firms, including reinstating rules holding them accountable for false or misleading statements and subjecting their voting advice to independent economic analysis.

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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.