The First Recommendation from the SEC’s Advisory Committee on Small and Emerging Companies

The Advisory Committee on Small and Emerging Companies held a brief telephone meeting on Friday in which it resolved to issue its first recommendation to the Commission. Specifically, the Committee recommended the Commission take “immediate action to … permit general solicitation and general advertising in private offerings of securities under Rule 506 where securities are sold only to accredited investors.” The full recommendation is set forth below.

The Committee is scheduled to hold its next meeting on Wednesday, February 1, 2012, to consider recommendations related the triggers for public registration and reporting, and suspension of reporting obligations (the 500 shareholder rule), crowdfunding and Regulation A, as well as to discuss the IPO On-Ramp report.

The Commission has also made available a number of useful background materials related to the Committee’s work on its website.

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