(FRN - Financial Regulation News) - U.S. Rep. Ann Wagner (R-MO), chair of the House of Representatives Financial Services Subcommittee on Capital Markets, recently touted panel advancement of a pair of capital formation bills.
Wagner released a statement regarding the Encouraging Public Offerings Act (H.R. 2793) and the Small Entity Update Act (H.R. 2792).
“The Encouraging Public Offerings Act ensures that all companies – rather than just emerging growth companies – are allowed to test the waters,” Wagner noted. “This bill will make listing on exchanges more attractive, strengthening our financial markets and providing main street investors more opportunities to grow their nest egg.”
The Encouraging Public Offerings Act codifies Rule 163B via the Securities Act by allowing an issuer to communicate with potential investors to determine interest in a securities offering before or after filing a registration statement.
The Small Entity Update Act would direct the Securities and Exchange Commission (SEC) to conduct a study, followed by a rulemaking consistent with the results of such study, including defining the term small entity via the Regulatory Flexibility Act.
According to Wagner, the bill would address concerns that numerous SEC rules do not appropriately balance the agency’s mandates to protect investors and facilitate capital formation.
“This bill will result in a better understanding of regulatory costs on small entities and ensure that the SEC modernizes its criteria for defining them, leading to a more targeted regulatory framework for these entities,” Wagner said.
By Douglas Clark
May 2, 2023
