SEC Division of Corporation Finance Acting Chair John Coates and SEC Acting Chief Accountant Paul Munter highlighted potential errors in accounting for warrants issued by Special Purpose Acquisition Companies.
The SEC Division of Corporation Finance staff issued guidance on accounting, financial reporting and governance issues that private operating companies should consider prior to undertaking a "business combination" with a special purpose acquisition company.
The Committee considered recent SEC proposals that would set a best interest standard for broker-dealers that provide investment advice to retail clients and impose additional disclosure obligations on BDs and IAs.
At an upcoming public meeting, the SEC Investor Advisory Committee will discuss capital formation, the decline of initial public offerings and certain provisions concerning the Financial CHOICE Act relating to the SEC.
The SEC Investor Advisory Committee meeting will be held on March 9, 2017. The agenda includes review of SEC investor research initiatives, a FINRA 2016 financial capability study, academic research on financial literacy, and unequal voting rights of common stock.