ASA Releases Comments on SEC’s 45th Annual Small Business Forum

WASHINGTON – The American Securities Association (ASA) today released comments submitted to the Securities and Exchange Commission (SEC) ahead of its 45th Annual Small Business Forum. ASA’s submission outlines recommendations for how the SEC and Congress can right-size regulation to help businesses raise capital and increase opportunities for investors.

“ASA commends Chairman Atkins for re-focusing the SEC on its statutory mandate to facilitate capital formation," said ASA President and CEO Chris Iacovella. "We look forward to working with the Commission to reform the regulatory landscape to make it easier for more small businesses to raise capital, and to provide every American investor the opportunity to participate in that growth story."

ASA’s key recommendations include:

Tailor Regulations for Emerging Growth Companies and Small Public Companies

• Extend the EGC on-ramp from five years to 10 years and increase the revenue threshold to a minimum of $2 billion.

• Allow EGCs to file short-form 10Qs with full negative assurance comfort from auditors on all (from SAS 72 standpoint) financial statements with limited MD&A.

• Allow all issuers to use Form S-3 shelf registration forms.
  

Improve Research Coverage for Pre-IPO and Small Public Companies

• Broker-dealers should be permitted to receive hard-dollar payments for research from clients without having to register as investment advisers.

• The ASA supports the ongoing SEC reconsideration of the Global Research Settlement.
  

Protecting Shareholders Against Political Activism

• Close the Rule 14a-4 loophole.

• Prohibit the inclusion of immaterial and frivolous shareholder proposals with a company’s proxy materials.

• Establish strong oversight of proxy advisory firms.
  

Read ASA’s full submission here.

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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.