Blog: ASA commends House committee’s approach to SEC Rule 15c2-11 – Financial Regulation News – Financial Regulation News

The American Securities Association (ASA) recently expressed support for the House Financial Services Committee’s position regarding Securities and Exchange Commission (SEC) Rule 15c2-11 and implications for Rule 144A debt offerings.

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U.S. Reps. David Kustoff (R-NY) and French Hill (R-AR) spearheaded the effort to forward correspondence to the SEC, detailing rule 144A offerings provide liquidity, competitive pricing and opportunities to help companies create jobs, grow and innovate.

“While ASA appreciates the SEC staff no-action letter from December 2021 on 15c2-11, applying this rule to fixed income would be a significant change to the SEC’s current rule set,” ASA Head of Government Affairs Kelli McMorrow said. “We strongly recommend the SEC issue a formal rulemaking proposal under the Administrative Procedure Act prior to making this type of substantive policy change to the corporate bond market.”

McMorrow said ASA is concerned the SEC’s policy would impact fixed income market liquidity, including offerings that fall under Rule 144A.

“We applaud the bipartisan members of the Financial Services Committee for asking the SEC to seek public feedback on this issue,” she said.

In October 2021, the association forwarded a letter to SEC Chairman Gary Gensler in which ASA CEO Chris Iacovella detailed support for Rule 15c2-11 and the increased transparency it provides to retail investors in the over-the-counter (OTC) equity market.

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