The White House reviews the U.S. Securities and Exchange Commission's proposal to relax stock issuance disclosure requirements

Golden Financial reports that on April 24th, the White House is reviewing a series of new regulations proposed by the U.S. Securities and Exchange Commission (SEC). These rules will facilitate initial public offerings (IPO) or fundraising in the public markets by relaxing disclosure requirements for new stock issuances and speeding up registration processes. According to the SEC, one proposal will overhaul the current issuance rules to “modernize the shelf registration process.” This move is expected to enable more companies to issue securities more quickly, allowing them to seize funding opportunities in favorable market conditions. Another proposal aims to expand the scope of simplified issuance filing requirements. Currently, this system only applies to emerging growth companies—that is, issuers with total annual revenue below $1.24B. Under existing regulations, such companies can disclose less information to investors and only need to provide two years of audited financial statements instead of three. According to information published on the Office of Management and Budget website, the SEC Chairman Paul Atkins previewed the above regulatory reform plan in a public speech earlier this week, and it was submitted to the White House for review on Wednesday. (Jin10)