On June 27, 2016, the Securities and Exchange Commission (the “Commission”) proposed amendments to the definition of “smaller reporting company” (SRC) that would expand the number of companies that have this status. These proposed amendments reflect a number of discussions relating to the Commission's scaled disclosure requirements following the creation of the “emerging growth company” category by the JOBS Act. The amendments are intended to promote capital formation by reducing the burdens on SRCs without significantly altering the total mix of information available to investors. The Commission is also proposing amendments to the definitions of “accelerated filer” and “large accelerated filer.”

Currently, SRCs are registrants, other than asset-backed issuers, investment companies, and majority-owned subsidiaries of non-SRC parent companies, with...