Reg A+ May Soon Be Available for SEC Reporting Public Companies
HR 2864 (aka; the Improving Access to Capital Act), a bill sponsored by House Representatives Kyrsten Sinema and Trey Hollingsworth, seeks to expand Reg A+ access to “fully reporting” public companies.
There is no clear reason why Reg A+ is not currently available to SEC reporting issuers. Private issuers and non SEC reporting public issuers, like those traded on the OTC PINK tier, can use Reg A+ in its current form.
Crowdfund Insider asked Senior Contributor Sam Guzik for his perspective on the legislation. Guzik says;
“This Bill is largely patterned after a formal request for rulemaking submitted to the SEC in June 2016 by OTC Markets, requesting that the SEC expand its Regulation A+ rules to allow the use of the Regulation A+ qualification process by all companies, including those companies who currently are “fully reporting” companies under the Securities Act of 1934. Though not required by the JOBS Act, the SEC in its rulemaking made a decision to exclude all fully reporting companies.”
“Given that Congress has not asked the SEC to limit the use of the revised Regulation A to non-reporting companies, this legislation, which requires the SEC to amend its rules, would provide a useful tool for smaller reporting companies to raise capital from the public through a streamlined SEC review process, and without the necessity to in some cases have the offering approved by the states on a case by case basis.”
Guzik is also of the opinion that the more business friendly SEC may take action without HR 2864 being signed into law.
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