The Financial Services Committee’s Subcommittee on Capital Markets, Securities and Investment recently conducted a hearing to review the Securities and Exchange Commission’s (SEC) Division of Corporation Finance.
Officials said the effort was designed to analyze how recent activities and future agenda items by the Division will advance the SEC’s mission to both protect investors and facilitate capital formation.
The hearing yielded a series of determinations, officials said, including the SEC should reevaluate regulations impacting companies ability to go public to ensure investors have access to material information; federal securities laws should focus on ensuring investors have access to information supporting long-term growth and shareholder value; and the SEC should ensure guidance and rules for investor disclosures are clear so companies can follow and comply with the federal securities laws.
“We must continue to make pro-growth reforms that ensure the United States has the strongest, deepest, and most liquid markets in the world,” Subcommittee Chairman Bill Huizenga (R-MI), said. “Our shared goal should be to reverse the negative trend of declining IPO’s and focus on capital formation. Hardworking families across the nation rely on the capital markets to save for everything from college to retirement. By making capital formation the priority, we can maximize Mr. and Mrs. 401(k)’s return on investment, expand opportunity, increase job creation and grow our economy.”