Tags: Capital Formation

Comment Letter: Senate Banking Committee: Capital Formation

The Security Traders Association (STA) appreciates the opportunity to provide comments on legislative proposals in advance of the February 28, 2019, Senate Committee on Banking, Housing, and Urban Affairs hearing on “Legislative Proposals on Capital Formation and Corporate Governance.” The STA comments are focused on the following provisions in S.488, the JOBS and Investor Confidence Act of 2018, as passed by the House in the 115th Congress:

  • Title IX, Encouraging Public Offerings (including similar companion legislation, S.2347, the “Encouraging Public Offerings Act” introduced in the 115th Congress);
  • Title XX, Main Street Growth (including companion legislation, S.3723 and H.R. 5877, the “Main Street Growth Act,” introduced in the 115th Congress);
  • Title XXIV, Improving Investment Research for Small and Emerging Issuers (including H.R. 6139 and S.3578, introduced in the 115th Congress); and,
  • Title XVIII, Options Markets Stability (including S.3283 and H.R. 5749, introduced in the 115th Congress).

Encouraging Public Offerings

Prior to the enactment of the Jumpstart Our Business Startups Act (JOBS Act), companies conducting public offerings could only meet with potential investors in time constrained meetings in the ten (10) days leading up to their IPO. This roadshow process did not allow sufficient time for issuers to provide a full description of their business model or for investors to properly research the company prior to investing. The JOBS

Read full letter here

House Financial Services Committee Hearing

House Financial Services Committee Hearing
“Implementation and Cybersecurity Protocols of the Consolidated Audit Trail”
The hearing will examine the status of the CAT’s implementation and the current adequacy of existing data security protections regarding the storage and use of CAT data by entities that are part of the CAT operating committee, the CAT plan processor, and the SEC. It also will examine whether additional cybersecurity protocols are necessary to properly safeguard collected data, including personally identifiable information (PII). More details here
See STA’s November Newsletter here

The Financial CHOICE Act

Dear Chairman Hensarling and Ranking Member Waters,

The Security Traders Association (“STA”)1 appreciates the opportunity to comment on the “Financial CHOICE Act of 2017” (H.R. 10).
STA’s comments will focus on the following…

Read full comment letter (PDF)>

Financial CHOICE Act of 2016

The Security Traders Association (“STA”)1 appreciates the opportunity to comment on the “Financial CHOICE Act of 2016” discussion draft. STA’s comments will focus on section 404 of Financial CHOICE Act relating to the fee structure funding the Securities and Exchange Commission (“Commission” or “SEC”).
Section 991 of the Dodd-Frank Act modified the funding sources of the Securities and Exchange Commission to one that relies exclusively on fees on equity securities and security futures transactions.

This was a departure from the Investor and Capital Markets Fee Relief Act enacted in 2002, which established a funding mechanism for the Commission through adjusted transaction fees (Section 31 fees), fees on registration of securities (Section 6(b)), fees on the purchase of securities by the issuer (Section 13(e)), and fees for certain proxy solicitations in corporate control transactions (Section 14(g)).

Read full comment letter here (PDF)>

Venture Markets & Senate Hearing on SEC Nominees

On March 16th, the STA hosted an Open Call on venture markets and the Main Street Growth Act (H.R. 4638) which would allow for the creation of venture exchanges. All attendees received a complimentary report on the Senate Banking nomination hearing for Lisa Fairfax and Hester Peirce to the Securities & Exchange Commission.

Presenter:

Cromwell Coulson
President, Chief Executive Officer and Director
OTC Markets

CALL NOTES

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STA Open Call Notes are free for members.
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