The U.S. Department of the Treasury released a report outlining ways to streamline and reform the U.S. regulatory system for the capital markets, and how to reduce burdens the capital markets cause.
The recently issued report was in response to Executive Order 13772 issued by President Donald Trump on February 3, 2017, which called on Treasury under the direction of Secretary Steven T. Mnuchin to “identify laws and regulations that are inconsistent with a set of Core Principles of financial regulation.”
As the capital markets are a source of liquidity for small businesses as they grow, invest, and hire, Treasury identified a list of ways to reduce the burden on companies that are looking to go public or stay public, while maintaining strong investor protections.
According to Treasury Secretary Steven T. Mnuchin, the U.S. has experienced slow economic growth for far too long. In this report, Treasury examined the capital markets system to identify regulations that are standing in the way of economic growth and capital formation.
“By streamlining the regulatory system, we can make the U.S. capital markets a true source of economic growth which will harness American ingenuity and allow small businesses to grow,” Mnuchin said.
Treasury’s recommendations include numerous measures to encourage companies toward public ownership, including “eliminating duplicative requirements, liberalizing pre-initial public offering communications, and removing non-material disclosure requirements, among other recommendations.”
In light of any improperly tailored regulatory burden that can “benefit the largest companies, which are better positioned to absorb the costs, and discourage competition from new entrants,” Treasury has also identified opportunities to ease challenges for smaller public companies, including scaled disclosure requirements.
A list of all of Treasury’s recommendations within this report is set forth as Appendix B, including the recommended action, the method of implementation.
View the full report by clicking here.
In addition, click here to view Treasury’s fact sheet.