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.
The SEC has launched a new website. The website looks fresh and modern. At first, I found myself at a loss as to where to look for familiar links, but the website seems to be user friendly and easy to navigate. It is interesting to note some of the topics that the SEC has chosen to cover prominently on the main page as they reflect the SEC’s current focus: initiatives under the Dodd-Frank Act, insider trading, Foreign Corrupt Practices Act, and whistleblower complaints. In addition, the SEC has kept on its main page a link to the notice reminding investors that any offers or sales of securities relying on the crowdfunding exemption would be unlawful under the federal securities laws until the SEC adopts rules implementing such exemption.