Washington regulators are looking at relaxing rules around companies raising capital after criticism that tough regulations are hindering the growth of start-ups and eroding the appeal of US public stock markets.
Mary Schapiro, chairwoman of the US Securities and Exchange Commission, called for a review of restrictions on communications in initial public offerings, the ban on marketing non-registered securities and the cap on the number of shareholders a private company can have before facing tougher disclosure requirements.
“I instructed our staff to take a fresh look at some of our offering rules to develop ideas for the commission to consider that would reduce the regulatory burdens on small business capital formation in a manner consistent with investor protection,” she said in testimony to a US House of Representatives committee on government oversight and reform on Tuesday.