The U.S. Securities and Exchange Commission voted to amend a set of rules to simplify and improve the “overly complex” procedures for exempt securities offerings.
According to a Nov. 2 announcement from the SEC, the proposed changes aim to “harmonize, simplify, and improve” the existing “overly complex” framework to make it easier for companies to conduct offerings that still protect investors.
“For many small and medium-sized business, our exempt offering framework is the only viable channel for raising capital,” said SEC Chairman Jay Clayton. “These businesses and their prospective investors must navigate a system of multiple exemptions and safe harbors, each with different requirements. While each component in this patchwork system makes some sense in isolation, collectively, there is substantial room for improvement.”
This story is developing and will be updated.