SEC Advisers Emphasize Scaled Rules for Smaller Public Firms

SEC advisers underscored Tuesday the need for scaled corporate compliance requirements based on business size to better incentivize smaller companies to enter the public market.

A proportional approach to requirements like disclosure obligations could help the Securities and Exchange Commission achieve its goal of making initial public offerings more attractive, members of the small business capital formation advisory committee said. The panel gives the SEC advice related to public companies with less than $250 million in market capitalization.

“If a company has modest revenues, a smaller market capitalization, and a straightforward business model, it should not face ...