ASA Letter: ASA Urges House Passage of Legislation to Improve Investment Research
WASHINGTON – The American Securities Association (ASA) today sent a letter to House Speaker Nancy Pelosi (D-CA) and Minority Leader Kevin McCarthy (R-CA) urging House passage of the Improving Investment Research for Small and Emerging Issuers Act (H.R. 2919), sponsored by Rep. Bill Huizenga (R-MI), to require the Securities and Exchange Commission (SEC) to produce recommendations for how to improve research coverage of emerging growth companies (EGCs) and other small public companies.
“H.R. 2919 would focus the SEC on this critical capital formation issue and begin the process of implementing reforms to expand coverage of small public companies and help more Americans share in their success,” ASA CEO Chris Iacovella wrote in the letter. “ASA urges members of the House of Representatives to approve this legislation as swiftly as possible.”
Recent research has shown that as many as two-thirds of public companies below a $100 million market capitalization have no research coverage at all, leading to a dearth of information for investors and negatively impacting the flow of capital into these businesses.
This lack of research serves as another impediment to companies considering going public and is directly related to the lack of small initial public offerings (IPOs) in recent years, ultimately harming investment opportunities for all Americans.
The House is expected to consider this legislation under suspension this evening.
To read the full letter to House leadership, click here.
ASA’s regional financial services companies work in communities across the country to create jobs, grow the economy, and increase prosperity for all Americans. The ASA exclusively represents the capital market and private client interests of its members and seeks to promote free market principles making it easier to access financial advice and capital. ASA members help Americans save for retirement, provide Main Street businesses with capital to grow, and advise hardworking Americans how to create and preserve wealth. For the latest updates follow @AmerSecurities and learn more at http://americansecurities.org/.