Paul Hastings Michael Zuppone Addresses Regulators at the SEC Government-Business Forum on Small Business Capital Formation
New York, NY- Paul Hastings, a leading global firm, announced today that
“To develop a more hospitable market there needs to be a change in the SEC’s regulatory policy,” said Mr. Zuppone. “The SEC needs to signal to market participants that it is open to revisit Regulation NMS as it relates to a new trading market. The development of a liquid trading market for Regulation A+ Tier 2 Issuers will be impeded unless resale trading benefits from preemption of Blue Sky qualification and registration laws.”
During his presentation Mr. Zuppone made two recommendations to the panel. First, he recommended that the SEC should permit smaller emerging growth companies (defined as companies with less than $250 million in revenues) to migrate to the periodic and current reporting system implemented for Regulation A+ Tier 2 issuers. Second, he recommended that the SEC adopt rules to preempt state blue sky law regulation of the trading in the stocks of companies reporting pursuant to Regulation A+ Tier 2 reporting system,
The SEC hosts an annual forum called "SEC Government-Business Forum on Small Business Capital Formation," that focuses on the capital formation concerns of small business. This gathering has assembled annually since 1982, as mandated by the Small Business Investment Incentive Act of 1980. A major purpose of the Forum is to provide a platform to highlight perceived unnecessary impediments to small business capital formation and address whether they can be eliminated or reduced. Each forum seeks to develop recommendations for government and private action to improve the environment for small business capital formation, consistent with other public policy goals, including investor protection.
Paul Hastings is a leading global law firm with a strong presence throughout Asia, Europe, Latin America, and the United States. Through a collaborative approach, entrepreneurial spirit, and commitment to client service, the professionals of Paul Hastings deliver innovative solutions to many of the world’s top financial institutions and Fortune 500 companies.