Nili Shah, Deputy Chief Accountant of the SEC’s Division of Corporation Finance, indicated that at its February 1, 2013 meeting, the SEC Advisory Committee on Small and Emerging Businesses approved the following recommendations to the SEC:

  • Increase tick size to improve liquidity for smaller exchange-listed companies (this recommendation included allowing companies to set their own tick size within a certain range designated by the Commission);
  • Encourage the creation of a U.S. equity market for small and emerging companies that is limited to accredited investors. The regulatory regime for companies whose securities trade in this market would be appropriately scaled (i.e., considering the nature and needs of the investors);
  • Increase the public float threshold for smaller reporting companies from $75 million to $250 million, extend to those companies many of the same benefits granted to emerging growth companies under the JOBS Act, provide those companies with relief with respect to Item 601 of Regulation S-K, and provide smaller reporting companies with an exemption from XBRL requirements; and
  • Relay the Committee’s disapproval of the Conflict Minerals and Resource Extraction provisions of the Dodd-Frank Act to Congress, as appropriate.

Ms. Shah indicated that the SEC staff is currently considering the various recommendations by the Advisory Committee. The Advisory Committee’s recommendations may be found athttp://sec.gov/info/smallbus/acsec.shtml.

If you have questions about these recommendations or any other matters, contact your Warren Averett Pender Newkirk partner, or any member of our SEC Practice Division at (813) 229-2321.