Regulatory burdens and antiquated laws reducing access to investment opportunities, says SIFMA CEO
A collection of U.S. trade groups, including the Securities and Financial Markets Association (SIFMA), on Thursday published a report offering recommendations for strengthening U.S. public capital markets by helping more companies go and stay public.
The recommendations include:
- measures to improve corporate governance, disclosure and other regulatory requirements;
- tailoring equity market structure for small firms;
- changes to financial reporting obligations; and
- encouraging analyst coverage for emerging growth companies.
“The recommendations included in this report represent a roadmap of positive reforms that have a strong amount of support from a broad spectrum of industry participants,” the report states.
“Regulatory burdens and antiquated laws are unduly hampering capital formation” for small businesses, “and may also be reducing investors’ access to investment opportunities,” says Kenneth Bentsen, SIFMA president and CEO, in a statement.
“As they have for the past few years, SIFMA members believe policymakers should continue to reassess existing regulations to allow more businesses to readily access U.S. capital markets while maintaining important protections for investors,” he adds.
Along with SIFMA, the report was produced by the American Securities Association, Biotechnology Innovation Organization, Equity Dealers of American, TechNet, Nasdaq and National Venture Capital Association.