Securities Act Concepts and Their Effects on Capital Formation

The Securities and Exchange Commission (the "Commission') has received the Report of the Advisory Committee on the Capital Formation and Regulatory Processes (the "Advisory Committee') chartered by the Commission. In addition to its consideration of the Report of the Advisory Committee (the "Advisory Committee Report'), the Commission is reexamining the application of the Securities Act of 1933 and the rules thereunder to securities offerings. Information and comment are being sought with regard to what reforms could or should be undertaken, consistent with the Commission's investor protection mandate, to reform the current regulation of the capital formation process. Varying approaches, including a "company registration' concept recommended by the Advisory Committee, are being considered.