Press Release: ASA Submits Comment Letter to SEC on Proposal to Help Revitalize IPO Market
WASHINGTON – The American Securities Association (ASA) this week submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) in support of a proposal to help revitalize the IPO market and meet the needs of America’s capital markets and Main Street investors.
“The ASA has long been concerned about the decline in public companies over the last two decades, and the impact this has had on innovation, growth, job creation, and the ability of Main Street households to invest in the growth stage of American businesses,” ASA CEO Chris Iacovella wrote in the letter. “For too long, the SEC sidelined its statutory duty to facilitate capital formation. That is not the case today, and the ASA appreciates the work of Chairman Clayton and the Commissioners to help re-focus the SEC on this prong of its mandate.”
“While the ASA strongly supports the Proposal and believes it is an important policy change that will help to revitalize the IPO market, we also share some of the concerns raised by Commissioner Peirce that it could further add complexity to the maze of issuer definitions under the securities laws,” Iacovella wrote.
While adopting the revenue-only test would undoubtedly make great progress for our public markets, ASA believes the SEC should consider going further and align the non-accelerated filer and SRC definitions to provide regulatory certainty for small companies.
To read the full letter, 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/.