SEC Proposes Looser Rules On Investor Communication

Law360, New York (December 23, 2009, 3:00 PM EST) -- The U.S. Securities and Exchange Commission has proposed changing its rules governing securities offerings to allow dealers and underwriters to communicate directly with would-be investors before certain issuers register their offerings.

The proposed rule, released Tuesday, would permit companies classified as "well-known seasoned issuers" to delegate some of the authority to communicate with investors on their behalf.

Currently, Rule 163(c) of the Securities Act of 1933 allows only WKSIs to correspond with prospective investors in advance of filing a registration statement.

Under the amendments, underwriters or...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.