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ASA Urges SEC to Put Direct Listing Proposal Out for Public Comment

Outlines questions the Commission must contemplate to protect mom-and-pop investors

WASHINGTON – The American Securities Association (ASA) today sent a letter to the Securities and Exchange Commission (SEC) urging the Commission to put last month’s Staff Order, approving the use of direct listings in primary offerings, out to the public under the notice and comment process. In the letter, ASA reiterated its investor protection concerns, highlighted how Chinese companies will use the process to defraud American investors and retirement savers, and outlined over twenty questions the Commission must contemplate and the public must understand prior to any final decision on direct listings.

“Approving the use of direct listings in primary offerings eviscerates longstanding securities laws and regulations so certain favored special interests can cash-out at the top of the market while mom-and-pop investors catch the falling knife as the bubble bursts,” said ASA CEO Chris Iacovella.

“Due process must not be skirted in this instance, and given the depth and complexity of the issues raised in this matter, we strongly recommend that the Commission vote to adopt a proposal under the Administrative Procedure Act to put this Order out for public comment. Staff orders should not be permitted to create loopholes in our financial regulation that could harm millions of mom-and-pop investors, incentivize fraudulent company listings, and undercut confidence in our equity capital markets,” Iacovella concluded.

To read ASA’s full letter to the SEC, click here.


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


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