Page 39 - Initial Public Offering - An Introduction to IPO on Wall Street

Regulation A+ also radically converts the regulatory review process for those offerings. Tier 2
offerings circumvent the regulatory oversight of state securities, a move strongly backed by
corporate interests but fiercely opposed by agencies that regulate securities in a State.

The SEC has also built a method of offering and reporting exclusive to Regulation A+ and
tailored especially for smaller businesses.

The new regulations modernize the registration, contact and offering procedures, bringing
several features currently available to issuers in registered offerings into Regulation A+, such
as permitting confidential inputs and implementing a notice-equal-access model.

However, in her keynote address to the 47th Annual Securities Regulation Institute of
Practicing Law School on 28 October 2015, Mary Jo White, who was chairing the SEC at the
time, pointed out that it wouldn’t be sensible to make judgments about Regulation A+ at this
early stage.

Therefore, we will have to wait before we can make pass any judgments about whether
Regulation A+ has been a success or not. However, it is definitely an improvement on
Regulation A.

9 Factors that May Affect Trends in Regulation A Offerings, GAO-12-839 (July 2012) (available at:
http://www.gao.gov/assets/600/592113.pdf) (the “GAO Report”).

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