The SEC Advisory Committee on Small and Emerging Companies (the "Committee") debated several regulatory issues relating to the capital-raising activities of small issuers. Specifically, the Committee discussed (i) the underwriting of small offerings, (ii) the tick size pilot program, (iii) enforcement report updates from state securities regulators, (iv) recommendations concerning secondary market liquidity for Regulation A securities, and (v) the treatment of "finders" who assist companies in capital-raising activities.

Newly confirmed SEC Chair Jay Clayton emphasized the importance of ensuring that capital-raising opportunities are made available to small and midsize businesses, which he said would foster innovation and economic growth. He acknowledged the myriad challenges that are faced by smaller companies, and indicated that discussions of the topics on the Committee meeting agenda should provide a "basis for action" in helping small and emerging companies to raise money.

SEC Commissioner Kara Stein highlighted the importance of maintaining investors' faith in access to capital for small companies:

"Investor trust and investor confidence are central to the ability of small companies to initially raise capital and to continue to access it. When investors trust the market, they invest again; they repeat their engagement with the market."

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