The SEC adopted inflation adjustments and other technical amendments to the Securities Act and the Securities Exchange Act in order to implement certain requirements mandated by the Jumpstart Our Business Startups ("JOBS") Act.
The amendments conform several of the SEC's rules and forms to JOBS Act provisions that relate to "emerging growth companies" ("EGCs") and, among other things:
- permit an EGC to present scaled financial disclosures;
- exempt an EGC from a Sarbanes-Oxley Act auditor attestation on management's assessment of its internal controls over financial reporting;
- exempt an ECG from advisory shareholder votes and certain disclosure requirements relating to executive compensation; and
- permit an EGC to defer compliance with any new or revised financial accounting standards.
In addition, the amendments adjust dollar amounts used in Regulation Crowdfunding for inflation and revise the definition of "emerging growth company" to reflect the adjustments.
The rule amendments will become effective upon publication in the Federal Register.
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