WASHINGTON, DC – The American Securities Association (ASA) today issued the following statement from President and CEO Chris Iacovella on the Fifth Circuit Court of Appeals’ actions vacating the U.S. Securities and Exchange Commission’s (SEC) corporate stock buyback reporting rule proposal:
“ASA applauds the Fifth Circuit Court of Appeals ruling the SEC stock buyback rule was ‘arbitrary and capricious’. Stock buybacks benefit the interests of America’s Main Street investors and retirement savers and the SEC completely failed to justify why this rulemaking was necessary. This ruling shows that this SEC and its leadership is not above the law and we think the American taxpayer has a right to know how much of their money the Gensler SEC wasted proposing, finalizing, and defending this rule in court.”
In April of 2022, the ASA submitted a comment letter to the SEC expressing concerns over the Commission’s proposal regarding share buybacks conducted by public companies.
Read the Court’s Order here.
About the American Securities Association
American Securities Association, based in Washington, DC, 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.