According to TechFlow on Deep Tide, on May 27, the U.S. Securities and Exchange Commission (SEC) is considering amending decades-old rules that prohibit companies from making certain communications during the listing process, with the aim of boosting Initial Public Offerings (IPOs). SEC Chairman Paul Atkins said at a Stanford University event on Tuesday local time that he welcomes reforms to the so-called ‘gun-jumping’ rules, which have not been updated for over 20 years.
Atkins stated: ‘The way companies communicated with employees, customers, and potential investors at that time bears almost no resemblance to today. I look forward to establishing a more coordinated set of rules that provide clarity, simplicity, and alignment with modern technology.’ Atkins has expressed regret over the decline in the number of publicly listed companies in the United States since the 1990s and has promised to relax rules and develop industry-friendly policies to stimulate market activity. Last week, the agency released a comprehensive proposal that could allow certain new large issuers to temporarily avoid complying with many of its strictest disclosure rules. Part of the proposal would allow companies classified as ‘large accelerated filers’ to skip certain requirements for up to five years. The agency will seek public comments on the proposal within 60 days. (Jinshi)
