Potential Relief from certain SEC Regulations for Mid-Market Companies

The House Capital Markets Subcommittee recently approved the Fostering Innovation Act, H.R. 6161 which proposes to revise the definition of an accelerated filer by (i) adding an annual revenue requirement of $100 million, and (ii) raising the minimum public float requirement from $75 million to $250 million.  If such bill is enacted, issuers with less than $100 million in revenues or a public float of less than $250 million would be considered non-accelerated filers and would be subject to less onerous reporting requirements.  For example, non-accelerated filers are not required to comply with the auditor attestation requirements of Section 404(b) of Sarbanes-Oxley. Accordingly, this bill, if adopted, would greatly reduce compliance costs and burdens for many mid-market companies.  

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