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| 2001 News and Press Releases |
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HEADLINE ARCHIVED:
SEC Weighs Updating Some Rules For The Internet Age
By: Howard Stock
The IPO Reporter. November 12, 2001
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Excerpt: The Securities & Exchange Commission is looking into whether it should adapt its rules for communicating with investors and raising capital, SEC Commissioner Laura Unger said. "The Commission has attempted to recognize the progress of technology over time - some commissioners more than others - but the time has come for more comprehensive change," she said at a recent meeting of the American Corporate Counsel Association's Westchester/Southern Connecticut chapter. In short, critics of the current system are eager for the SEC to embrace technologies that make capital raising more efficient and less expensive. For example, the companies that raised more than $400 billion in the private market could have saved money communicating with qualified investors electronically if SEC rules had allowed. The removal of this "general solicitation" rule could make life easier for small caps, Unger said. "[This] would enable small companies to use the Internet to reach a wider breadth of potentially qualified investors. By substantially reducing the costs and burdens of capital raising for small businesses, we could actually generate additional wealth for that sector of the economy."
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