Signaling an interest in potentially overhauling its current securities offering exemption structure, the SEC has published a Concept Release, seeking public comments on a broad host of topics centering around the Commission’s current registration exemption regime. Clearly, the impetus for these potential changes comes from SEC Chairman Jay Clayton, who has declared the rationalization and democratization of capital formation to be a major goal of his tenure at the SEC.
A “Concept Release” is an infrequently-used administrative proceeding that enables the SEC to potentially commence the process of regulatory reform by first soliciting opinions from interested parties. In announcing the publication of its new Concept Release, the SEC aims to “simplify, harmonize, and improve” its current exemption regime in an effort to balance the goals of promoting capital formation and protecting investors. Continue reading