As we previously reported, the Director of the SEC’s Division of Corporation Finance, Keith Higgins, testified before the House Financial Services Committee on a broad range of matters, including the SEC’s progress in implementing the rules required by the Dodd-Frank Act and the JOBS Act, as well as the Division’s disclosure reform initiative.  Congressmen commented on the SEC’s proposed amendments to Regulation D and Form D, as well as on the SEC’s crowdfunding proposal.  A few mentioned bills that had been introduced in, or had been passed by, the Committee, such as the bill that provides relief to small issuers from XBRL compliance.  Various Congressmen commended Chair White and the SEC for undertaking a review of the disclosure system.  Several urged the SEC to consider the recommendations of the SEC’s Forum on Small Business Capital Formation.  A number expressed interest in the SEC’s Dodd-Frank Act-mandated study of the definition of “accredited investor.”  Rep Hultgren pointed to the test recently adopted in the United Kingdom that permitted individuals that did not meet a net worth test to meet a financial sophistication requirement by either taking a test or demonstrating understanding as a result of their education or an advanced degree.  He asked Higgins whether the Division was considering an “educational component” as part of the accredited investor definition.  Higgins noted that it was one of the things that the Division was reviewing.  Higgins also noted that the Division is preparing recommendations for final rules on the Regulation D, crowdfunding and Regulation A+ proposals, as well as on proposals to implement the changes in JOBS Act Title V and Title VI.

The prepared testimony can be accessed here: