At this morning’s open meeting, the Securities and Exchange Commission adopted an amendment to Rule 701. The Commission was mandated to adopt an amendment to Rule 701 by the Economic Growth, Regulatory Relief and Consumer Protection Act, often referred to as the Crapo Act. The amendment increases the threshold that triggers an issuer’s requirement to provide certain disclosures to investors from $5 million to $10 million. In addition, the Commission approved the release of a concept release soliciting comments regarding Rule 701 and Form S-8 requirements. The release solicits responses on more than 50 questions. The Commission did not consider or take action on the changes to certain financial statement related requirements, which originally had been on the agenda for the meeting.
Below we provide links to the Commission’s fact sheet, the amendment and the concept release. A client alert will follow in short order.