{"id":9124,"date":"2019-02-25T09:01:47","date_gmt":"2019-02-25T14:01:47","guid":{"rendered":"http:\/\/centerforfinancialstability.org\/wp\/?p=9124"},"modified":"2019-02-25T09:01:47","modified_gmt":"2019-02-25T14:01:47","slug":"sec-proposes-greater-flexibility-on-communications-with-institutional-investors","status":"publish","type":"post","link":"https:\/\/centerforfinancialstability.org\/wp\/2019\/02\/25\/sec-proposes-greater-flexibility-on-communications-with-institutional-investors\/","title":{"rendered":"SEC Proposes Greater Flexibility on Communications with Institutional Investors"},"content":{"rendered":"<p>The SEC <a href=\"https:\/\/www.sec.gov\/rules\/proposed\/2019\/33-10607.pdf\">proposed<\/a> a new rule and related amendments that would allow issuers to communicate with certain potential investors to determine whether such investors might be interested in a &#8220;contemplated registered securities offering.&#8221; Under the proposed rule, such communications would be exempt from restrictions imposed by <a href=\"https:\/\/www.findknowdo.com\/us\/usc\/t15\/s77e\">Securities Act Section 5<\/a>.<\/p>\n<p>The proposal is intended to give more flexibility to issuers regarding their communications with institutional investors. According to the SEC, the proposal would expand the &#8220;test-the-waters&#8221; accommodation to all issuers, including investment company issuers. The accommodation is currently only available to emerging growth companies. Under the proposal:<\/p>\n<ul>\n<li>there would be no filing or legending obligations;<\/li>\n<li>&#8220;test-the-water&#8221; communications must not be at odds with material information in the related registration statement; and<\/li>\n<li>issuers that are subject to <a href=\"https:\/\/www.findknowdo.com\/content\/regulation-fd-%28fair-disclosure%29\">Regulation FD<\/a> would be obligated to consider whether any information in a &#8220;test-the-water&#8221; communication would lead to disclosure obligations under Regulation FD.<\/li>\n<\/ul>\n<p>Comments must be received by the SEC no later than 60 days after the date of publication of the proposal in the Federal Register.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SEC proposed a new rule and related amendments that would allow issuers to communicate with certain potential investors to determine whether such investors might be interested in a &#8220;contemplated registered securities offering.&#8221; Under the proposed rule, such communications would &hellip; <a href=\"https:\/\/centerforfinancialstability.org\/wp\/2019\/02\/25\/sec-proposes-greater-flexibility-on-communications-with-institutional-investors\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-9124","post","type-post","status-publish","format-standard","hentry","category-reg"],"_links":{"self":[{"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/posts\/9124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/comments?post=9124"}],"version-history":[{"count":1,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/posts\/9124\/revisions"}],"predecessor-version":[{"id":9125,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/posts\/9124\/revisions\/9125"}],"wp:attachment":[{"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/media?parent=9124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/categories?post=9124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/tags?post=9124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}