SEC plot challenge to AIM with disclosure overhaul

The Securities and Exchange Commission is
planning a shake-up of the regulatory environment for smaller companies quoted
listing in the US.

The proposals include a new system of securities regulation for smaller
public companies that would make lighter regulation – a hallmark of the UK ‘s
market – available to a much larger group of smaller public companies.

Also, modified eligibility requirements would allow companies with a public
float below $75m (£37.8m) to take advantage of the benefits of shelf
registration. This centres on the registration of a new issue prepared up to two
years in advance, so that the issue can be offered quickly as soon as funds are
needed or market conditions are favourable.

John W White, the SEC’s director of corporation finance division said: ‘As we
all recognise, smaller companies are critical players for our capital markets
and for the US economy more broadly. By proposing to rationalise the regulations
that apply to capital raising and public reporting by smaller companies…. the
Commission has again confirmed its commitment to the health and robustness of
this important segment of our markets.’

Further reading:

SEC gives green light to fresh
interpretation of Sarbox

PwC: Public floats booming in the US 

‘Foreign IPOs don’t dilute AIM quality,’
says chief

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