26 Jul Hopeful for Regulation A+ Final Rules Soon

As my faithful blogees know, I have been a strong advocate for the changes to SEC Regulation A that are in the process of being finalized. Congress mandated that the SEC implement these changes as part of the Jumpstart Our Business Startups (JOBS) Act of 2012. The SEC announced proposed rules in December, and the comment period ended in March with lots of positive and constructive suggestions both supporting and offering potential improvements to the 300+ page proposal. I have also strongly supported both the tone, intent and substance of the proposal. The change could offer a very attractive method for a smaller company to complete an IPO onto the over-the-counter markets without state “blue sky” intervention and with reduced offering and post-offering disclosure obligations.

In a speech earlier this year, SEC Chair Mary Jo White said finalizing the Regulation A (many now call it Regulation A+) rule changes is one of her 2014 priorities. We hope nothing has changed and Chair White is pushing her staff in the Division of Corporation Finance, headed by Keith Higgins, to complete these important initiatives as soon as possible.

I have been speaking to many on Wall Street about the potential game-changing nature of the Regulation A changes. I am most excited about the fact that the SEC’s rule proposal seems to be sending a message that they hope to encourage the wide use of the updated technique. The proposal struck a masterful balance between appropriate easing of regulations on smaller IPOs while maintaining very strong investor protections. Hope we get this done soon!