Speech by SEC Commissioner:
Remarks at the Open Meeting on Foreign Private Issuer Deregistration Rules
Commissioner Kathleen L. Casey
U.S. Securities and Exchange Commission
March 21, 2007
I have a few brief comments this morning.
First, I would like to commend the excellent work of the staff of the Division of Corporation Finance and the Office of Economic Analysis. The final rule amendments before us are the well-crafted result of a highly considered and deliberative process. They respond to the constructive public comments that were received, and seek to address the deficiencies identified in the original proposal of December 2005 — principal of which is the adoption of a trading volume standard. So, again, I commend the staff for superb work.
Second, I believe the final rule amendments before us today not only adopt a rational and principled policy approach that should more effectively stand the test of time as our markets continue to expand and grow, but send an important signal of the confidence and strength of our market and our recognition of the increasingly global nature of the marketplace.
By eliminating unnecessary and burdensome regulatory barriers to exit, we hope to encourage and welcome foreign private issuers to access our markets and register and list their securities in the United States. With U.S. investors increasingly seeking investment in foreign securities, encouraging foreign listings in the U.S. facilitates greater investment opportunities for U.S. investors with the benefit of U.S. investor protections. At the same time, the rules we adopt today also provide meaningful protections for U.S. investors when a foreign private issuer seeks to deregister.
Finally, today's rule is an excellent example of our need and ability to thoughtfully re-examine our decades-only rules (and we have many) to ensure that they are reflective of, and responsive to, contemporary investor needs and market realities.
Again, I am pleased to support the final rule amendments, and I thank the staff for their hard work.