BioCentury
ARTICLE | Politics & Policy

Task force calls on SEC to implement Reg A changes

November 14, 2013 1:29 AM UTC

A group of stakeholders said the SEC should immediately implement changes to a rule that enables companies to raise money on the public markets without doing a full-blown IPO. The changes to Regulation A are mandated by the Jumpstart Our Business Startups Act. JOBS raised to $50 million from $5 million the amount a company can raise under Reg A, but the agency has yet to implement the change. An SEC spokesperson said the agency has met with stakeholders and is finalizing rule recommendations, but declined to provide a timeline. A spokesperson for Rep. Patrick McHenry (R-N.C.) -- who in May introduced a bill that would have set an Oct. 31 deadline to complete rulemaking for the Reg A reforms -- said Congress expects the agency to issue proposed rules for the reforms by year end.

The recommendation came in a report from the Equity Capital Formation Task Force, which was created in June. Task force members include representatives from NYSE, NASDAQ OMX, the National Venture Capital Association (NVCA) and the Biotechnology Industry Organization (BIO). ...