The SEC has scheduled an open meeting for tomorrow where the members of the Commission will discuss and vote on certain regulatory items.
The topics of discussion include:
- The Commission will consider action relating to the compliance date for the amendments to Form PF that were adopted on February 8, 2024.
- The Commission will consider whether to issue a policy statement addressing the presence of a provision requiring arbitration of investor claims arising under the Federal securities laws and its impact on decisions whether to accelerate the effectiveness of a registration statement.
- The Commission will consider whether to amend its Rules of Practice relating to procedures governing Commission review of staff actions made pursuant to delegated authority in connection with the determination of the effectiveness of a registration statement or the qualification of a Regulation A offering.
Each of these items falls under the Division of Corporate Finance.
The Reg A item is of interest as it is a security exemption used for online capital formation (crowdfunding). One of the challenges with the exemption is the time it takes for an offering to be qualified. Sometimes described as a “mini-IPO” type offering, as issuers may choose to trade securities issued under the rule, some insiders have lambasted the extended amount of time it takes for the SEC to review a filing, which makes this funding path less appealing.
The meeting is scheduled to take place from 10 AM to 12 noon ET and will be live-streamed on the SEC website.
