ASA Supports Bipartisan INVEST Act

WASHINGTON – The American Securities Association (ASA) today publicly released its letter sent to House Leadership in strong support of the bipartisan Increasing Investor Opportunities (INVEST) Act. The bill is expected to be considered on the House floor later today.

“ASA applauds Chairman Hill and the Financial Services Committee for championing the INVEST Act, which tailors regulation for America's small public companies, expands investment opportunities for working families, and saves Main Street investors millions of dollars every year by allowing them to receive their financial statements by email," said ASA President and CEO Chris Iacovella. "We look forward to working with Congress to get this bill to the President's desk."

ASA is particularly supportive of the below provisions of the INVEST Act: 

Section 205, Improving Disclosure for Investors

This provision would make electronic delivery the default delivery mechanism of shareholder and customer material for broker-dealers, investment managers, and advisers. This is a long overdue and common-sense change that recognizes how the vast majority of investors receive and examine information today. 

Amendments to the Accredited Investor Definition (Title II)

ASA generally supports expanding the definition of “accredited investor” under SEC Rule 501. The status quo has prevented millions of households from being able to invest in promising private funds or businesses and, as the SEC’s Office of the Advocate for Small Business Capital Formation recently

noted, has been discriminatory.

Expanding the Initial Public Offering (IPO) On-Ramp (Title III)

The ASA strongly supports efforts to build upon the success of the 2012 Jumpstart Our Business Startups (JOBS) Act and tailor regulation for emerging growth companies (EGCs) and smaller public companies. Title III would, amongst other provisions, expand the JOBS Act “test the waters” and confidential filing provisions to all issuers, and allow EGCs to submit two (rather than the typical three) years of audited financial statements.

To read ASA's letter, click here.

ASA also joined a coalition letter in support of the INVEST Act, available 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.