An SEC advisory committee has released a report proposing to replace existing transaction-based securities registration with a company registration system

Article Abstract:

The SEC's Advisory Committee on Capital Formation and Regulatory Processes has issued a report suggesting the replacement of transaction-based stock registration with a company registration system. Although the system works fairly well, capital formation and system efficiency would be enhanced by a change. Distinctions between public and private and offshore and domestic offerings would no longer be necessary under the proposed company registration system. As a tradeoff for these benefits. companies would be required to waive some exemptions. The proposed system is described in some detail.

Securities industry, Disclosure (Securities law)

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In proposals designed for small businesses, the SEC would permit issuers to 'test the waters' and would shorten holding periods for restricted securities

Article Abstract:

The Securities and Exchange Commission (SEC) has proposed rule changes and is seeking comment on other possible ones with the goal of liberalizing the capital formation and regulatory processes. One proposal would let issuers contemplating a public offering to first query potential investors on their interest, a change primarily benefitting small issuers. The SEC is also pondering a new Rule 1001, making offerings exempt in California from state law registration likewise exempt from comparable federal oversight.

Interpretation and construction, California, Going public (Securities), Initial public offerings, Securities law

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With the release of the Securities and Exchange Commission's 'plain English' rules, issuers and investors alike must adjust to a world of greater clarity

Article Abstract:

The SEC issues a release describing proposed plain English rules in Jan 1997 and promulgated the final rules on Jan 28, 1998. These rules should lead to more user-friendly prospectuses, but complying with them and minimizing liability concerns will at times be challenging. Plain-English prospectuses for high-technology companies will be particularly challenging since the rules discourage technical jargon and glossaries.

Law, Legal language

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