SEC Commissioner Peirce Encourages "Bold Action" to Facilitate Capital Formation
SEC Commissioner Hester M. Peirce encouraged regulators to take "bold action" to facilitate capital formation and help small businesses cope with the economic impacts of the COVID-19 pandemic.
In a statement to the SEC Small Business Capital Formation Advisory Committee, Ms. Peirce encouraged staff to consider temporary adjustments to current securities laws exemptions, such as:
- allowing issuers that are relying on Regulation A ("Conditional Small Issues Exemption") to make offers through television, radio, or print advertisements; and
- permitting intrastate offerings under Securities Act Rule 147A ("Intrastate sales exemption") and Rule 147 ("Intrastate offers and sales") to include part-time residents, so that individuals in locations other than their primary residence due to COVID-19 can invest in the communities where they are living.
Additionally, Ms. Peirce asked the SEC to consider whether it should (i) deregulate offers to focus on sales and/or (ii) simplify the current offering framework.
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