Press Release: Modernizing Sarbanes-Oxley Will Help Smaller Companies Grow and Streamline IPO Process
WASHINGTON – The American Securities Association (ASA) today commended the U.S. Securities and Exchange Commission for advancing a proposal to modernize Sarbanes-Oxley audit requirements in a way that frees up more capital to help small businesses grow, become public earlier, and invest in worker wages and other important growth expenditures.
“The SEC is right to address the impact of the Sarbanes-Oxley Act and help reduce unnecessary compliance costs that can more productively be invested in raising worker wages, life-changing drug trials, important research and development, and other capital expenditures vital to small business growth in America,” said ASA CEO Chris Iacovella. “This is another important step in the Commission’s small business capital formation agenda that will ultimately expand opportunity for more Americans.”
The proposal from the SEC—advancing today by a vote of 3-1—is consistent with ASA’s recommendations from a 2018 IPO report, suggesting the SEC use a revenue threshold to extend the Sarbanes-Oxley 404(b) exemption to better measure the size of a small company.
“While we strongly support the proposal, we also share the concerns of Commissioner Peirce that the maze of SEC definitions makes it difficult for a company to determine its regulatory status at any given moment, and look forward to partnering with her and the Commission to further simplify the process,” Iacovella added.
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/.