11 Nov Upcoming SEC Small Business Conference – Time to Work on the List!

I call it “the List.” Probably because that’s what it is, the list of recommendations that those of us in the private sector make to the SEC at the annual Government-Business Forum on Small Business Capital Formation. The SEC is mandated by statute to hold this event annually, which I will attend as usual next week in Washington. After morning panels, at afternoon breakout sessions, 3 or 4 groups cover different topics and each develop 5 recommendations, which are then ranked after the fact and published.

Why is the List important? Because Congress looks at it. The SEC Commissioners look at it. And groups such as the SEC Advisory Committee on Small and Emerging Companies look at it. Real changes have been brought about from the List. Improvements in the regulation of reverse mergers. Shortening the Rule 144 holding periods. Expanding the availability of short form registration on Form S-3. More recently many aspects of the JOBS Act, including the Regulation A reforms and elimination of the ban on general solicitation in Regulation D offerings. Sometimes it’s the SEC that acts, sometimes Congress. And sometimes we go years without anything moving off the List.

An issue important to me these days? Allowing all full SEC reporting companies access to Form S-3. The SEC actually proposed it back in 2007 but it was ultimately changed. The House Financial Services Committee has already passed a bill to do this (thanks to the List!), but the SEC could do it on their own. If a company is current and timely in its filings, and those filings are reviewed by the SEC regularly as required by law, they should be able to access short-form registration to do shelf and registered direct offerings. There’s more, but this is a big one for me currently. See you all in DC next week!