U.S. Securities and Exchange Commission reviews four pending proposals to ease reporting burdens and broaden IPO access

In remarks to the Small Business Capital Formation Advisory Committee, the U.S. Securities and Exchange Commission provided an update on four pending rule proposals aimed at making it easier for companies, particularly smaller and newer issuers, to go public and remain public. The speech framed the proposals as part of a broader effort to address the long-term decline in initial public offerings by reducing regulatory burdens, widening access to capital markets tools and revisiting disclosure requirements. The update highlighted a proposal that would let public companies choose one semiannual report each year instead of three quarterly reports. It also pointed to a registered offering reform proposal that would expand access to Form S-3 shelf registration to nearly all public companies, increasing the number of eligible issuers by more than 60 percent, and would allow brokers and dealers greater freedom to publish research on issuers in registered offerings even when participating in those offerings. A separate filer status reform proposal would recalibrate disclosure and other requirements based on company size and maturity, including broader relief from auditor attestation of internal control over financial reporting and a longer period on the "IPO on-ramp." The speech also referred to the Commission's proposal to rescind the prior climate disclosure rules. The Commission is seeking public comment on the proposals, including input from the committee and outside speakers, as it considers further action.