Wagner Bill to Help Small Businesses, Reduce Regulatory Burden Passes House

Washington, D.C. – Congresswoman Ann Wagner (R-MO), Chair of the Financial Services Subcommittee on Capital Markets, released the following statement after her bipartisan legislation, the Encouraging Public Offerings Act, passed the House.  Chair Wagner spoke in support of this legislation on the House Floor and you can watch her remarks here. 

“Startup companies are oftentimes doing innovative and complex activities that will benefit our economy.  They should be encouraged to sit down with potential investors and given the opportunity to explain why their business model is the right one for an investment plan without additional regulatory burdens.  My bipartisan piece of legislation will encourage more companies to go public and expand provisions of the JOBS Act by codifying an existing SEC rule to allow all companies to ‘test the waters’ and communicate directly with potential investors before filing for an IPO.  I appreciate the strong support this legislation got on both sides of the aisle, and I hope the Senate takes immediate action so small businesses and entrepreneurs can get the relief they need and deserve.”

Background
H.R. 2793, the Encouraging Public Offerings Act
This bipartisan bill codifies Rule 163B under the Securities Act by allowing an issuer to communicate with potential investors to determine interest in a securities offering, either before or after the filing of a registration statement (i.e. test the waters).