Looking Ahead...

We write this as a new administration looks to make its mark with an agenda that was premised on promoting capital formation by easing regulatory burdens. Once a new chair of the Securities and Exchange Commission (“SEC”) is confirmed and the two vacant commissioner positions are filled, it is fair to expect that the SEC will consider taking forward a few of the initiatives that were advanced by the SEC under Chair Mary Jo White’s tenure. For example, it is reasonable to anticipate that a reconstituted SEC will advance the disclosure effectiveness initiative. The objective of the review of business and financial disclosure requirements by the staff of the SEC’s Division of Corporation Finance (the “SEC Staff”) was to eliminate outdated or redundant requirements. Certainly, arriving at more focused disclosures that are user-friendly for investors should meet with bipartisan support. In addition, we anticipate that the SEC will consider advancing other measures intended to provide some regulatory relief for smaller companies, such as the proposed amendments to the definition of smaller reporting company.

We will be reporting on these and related developments in upcoming issues of this publication, as well as on our Jumpstarter blog.