MFA Recommends Rule Revisions to Strengthen Public and Private Securities Markets

The Managed Funds Association ("MFA") urged the House Financial Services Committee ("HFS") to advance a number of rule changes to strengthen both public and private capital markets and "to continue to embrace alternative asset management as a driver of economic growth."

In a letter to HFS Chair French Hill and Capital Markets Subcommittee Chair Ann Wagner, the MFA proposed allowing public companies to gauge investor interest "without fear of prospectus liability under the securities laws." The Association also called for reducing burdens on SEC-reporting issuers by streamlining Forms 10-Q and 10-K. The MFA advocated for expanding the definition of "well-known seasoned issuer" status to facilitate capital raising.

As to trading markets, the MFA recommended market structure reforms for "thinly traded" securities to boost institutional investment and research coverage. The Association supported expanding central clearing in the Treasury market but cautioned against mandatory clearing rules that could reduce efficiency.

For private markets, the MFA proposed streamlining regulations to enable more investment products and reforming fee disclosures to ease access to alternative funds. The Association also urged clearer guidance for ERISA fiduciaries on offering alternative investments in retirement plans and supported regulatory openness to blockchain and tokenization.

Further, the MFA called for revising the "accredited investor" definition to include professional experience and raising the shareholder threshold for an issuer to become subject to public reporting.