Changes From the SEC: Confidentiality is Key

Changes From the SEC: Confidentiality is Key

Changes From the SEC: Confidentiality is Key

In a recent effort to foster increased public offering activity, the U.S. Securities and Exchange Commission (SEC) announced on 29 June 2017 that it will permit all companies to submit voluntary draft registration statements relating to initial public offerings (IPOs), certain follow-on offerings and national securities exchange listings for non-public review.

This process will be available for nearly all offerings made in the 1st year after a company has entered the public reporting system. This benefit takes effect on 10 July 2017.

The Big Q: So, why is this an important change?

The Big A: This degree of confidentiality will allow companies to have more flexibility in structuring their offering.

Prior to the announcement, only IPOs by emerging growth companies (EGCs), along with various foreign private issuer offerings, were able to participate in confidential reviews of draft registration statements.

The expansion of confidential review to all enterprises, is intended to “…foster capital formation, provide investment opportunities, and protect investors,” said the Director of the Division of Corporation Finance, Bill Hinman, in a 30 June statement.

The non-public review process reduces the potential exposure to market fluctuations that could negatively impact an offering or harm the public shareholders.

More companies now have the capacity for better planning of their offering and improved protections.

This could be a huge advantage for some.

What will this change mean for you?

Contact us for all of your securities needs in the US and Internationally.

Have a terrific week,

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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