On September 13, 2011, the SEC announced that it had formed the Advisory Committee on Small and Emerging Companies.5 This Committee is tasked with providing advice and recommendations to the SEC specifi cally related to privately held small businesses and publicly traded companies with less than $250 million in public market capitalization.

The committee will advise the SEC on such issues as:  

  • Capital raising through private placements and public securities offerings;
  • Trading in the securities of small and emerging and small publicly traded companies; and
  • Public reporting requirements of such companies.

The committee consists of 19 members generally drawn from smaller public and private companies, law and accounting fi rms, investment banks and investment funds throughout the country as well as an observer from each of the Small Business Association and the North American Securities Administrators Association.

This effort may be part of President Obama’s promise in the release of his “American Jobs Act” proposal on September 8th that “We’re also planning to cut away the red tape that prevents too many rapidly-growing start-up companies from raising capital and going public.”6