16 Jan SEC Issues Interim Rules on FAST Act

I’m reminded of the late great comic George Carlin and his love for words and needling the establishment. During his standup on the first episode of Saturday Night Live, he famously quipped, “The term jumbo shrimp has always amazed me. What is a jumbo shrimp? I mean, it’s like military intelligence – the words don’t go together, man.”

This week, the SEC issued “Interim Final Rules” to act on important statutory mandates in the Fixing America’s Surface Transportation (FAST) Act. As we know, amendments were tacked on to this bill helping companies that are public or considering becoming public. It’s pretty rare of them to do that as a way to make rules. Normally they propose a rule, wait for comments and eventually finalize and implement. With the stroke of their pens, however, the SEC also can issue a final rule up front but deem it “interim” and subject to comment and change. And they did so here.

This is good. It lets companies start benefiting immediately from forward incorporation by reference in Form S-1 filings, as well as reduced financial disclosure in some cases when you are doing an IPO. In truth, the FAST Act provisions were effective immediately, the SEC just had to amend some forms and such to make it official. But still. Thanks 100 F St. NE 6th Floor.