Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Wednesday, January 16, 2013

SEC Advisory Committee on Small Companies Releases Recommendations

The SEC's Advisory Committee on Small and Emerging Companies released draft committee recommendations(Download Draft-committee-recommendations-statement-020113[1]) today, which include:

  Immediately provide for a meaningful increase in tick size as a necessary step toward encouraging the reestablishment of an infrastructure designed to increase liquidity for small public companies.
 Encourage the establishment of an exchange limited to accredited investors where disclosure requirements for listed companies would be appropriately limited in light of the absence of retail investors.
 Rationalize the disclosure framework for small cap companies by raising the market capitalization threshold for small reporting companies (SRCs) and extending to SRCs the benefits granted to emerging growth companies under the JOBS Act.
 Further ease the compliance burden on SRCs by exempting SRCs from other requirements that result in significant costs for SRCs without generating information necessary to making an informed investment decision.

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