U.S. Rep. Ann Wagner (R-MO) introduced three bipartisan bills that are designed to promote capital formation.
One of them is the Encouraging Public Offerings Act, which would codify Rule 163B under the Securities Act by allowing an issuer to communicate with potential investors to determine interest in a securities offering, either before or after the registration statement is filed.
Another is the Increasing Investor Opportunities Act. This bill would give retail investors greater access to private fund investment opportunities while retaining the protections of the Investment Company Act of 1940.
The third is the Small Entity Update Act. This bill would direct the Securities and Exchange Commission to conduct a study, followed by a rulemaking consistent with the results of the study. The rulemaking would include defining the term “small entity” under the Regulatory Flexibility Act.
“Families need greater access to investment opportunities, and small businesses deserve to grow without fighting reckless overregulation by the government,” Wagner said. “These three pieces of legislation will expand options for Main Street investors to save for their future, ensure local businesses can create even more jobs in our communities, and prevent overregulation from stifling the innovation that makes the United States the best place to build your business.”
The bills now move to the House Financial Services Committee for consideration.