ASA Statement on SEC’s Direct Listing Vote
Regulatory rollback harms investors, tips scales in favor of Wall Street and Silicon Valley.
WASHINGTON – The American Securities Association (ASA) today urged the Securities and Exchange Commission (SEC) to reject a proposed rule approving the use of direct listings in primary offerings ahead of the Commission’s expected vote this morning.
“The ASA is disappointed the SEC appears poised to rollback decades-old investor protections for initial public offerings (IPOs) in a way that tips the scales in favor of Wall Street and Silicon Valley at the expense of America’s mom-and-pop investors,” said ASA CEO Chris Iacovella. “Approval of direct listings for IPOs circumvents the will of Congress and inexplicably moves the investor protection pendulum in the wrong direction.”
In September, ASA sent a letter to the SEC reiterating its investor protection concerns and highlighted how Chinese companies will use the 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/.