.png){kind=logo}
Sends letter supporting key bills to bolster economic growth and increase capital formation
WASHINGTON, D.C. – Today, the American Securities Association (ASA) sent a letter to the House Financial Services Subcommittee on Capital Markets in advance of a hearing entitled “U.S. Public Markets Built for the 21st Century: Exploring Reforms to Make Our Public Markets Attractive for Small and Emerging Companies Raising Capital.”
“We applaud Chair Wagner for prioritizing legislation to remove the government-imposed barriers small companies must overcome to go public and for addressing the research and trading issues they face after they are public,” ASA CEO Chris Iacovella said. “Regulation has made it too costly for small businesses to go public, harmed research coverage, and reduced liquidity in their stocks once they complete an IPO. Today’s policy changes address those issues and will serve to bolster economic growth and increase jobs across the country.”
Additionally, the letter provided the Committee with further context on legislation slated for discussion during the hearing that aligns with ASA’s top priorities, including:
H.R. 9605, a bill to amend the Investment Advisers Act of 1940 to allow brokers to accept “hard dollar” payments for research,
H.R. 3448, "Helping Startups Continue to Grow Act,"
And a bill to require the Securities and Exchange Commission to revise certain thresholds to exempt small public companies from the onerous requirements under Section 404(b) of the Sarbanes-Oxley Act.
Last month, ASA submitted a letter to the Securities and Exchange Commission (SEC) Small Business Capital Formation Advisory Committee regarding concerns over the decline in the number of public companies going public and outlined recommendations complementary to the letter sent to the Subcommittee.
###