SEC Proposes Easing IPO, Audit Rules for 81% of Public Companies

4 articles · Updated · Accounting Today · May 19

The SEC would recast nearly all public companies that are not large accelerated filers as non-accelerated filers, extending lighter disclosure rules and exempting them from auditor attestation on internal controls.
About 81% of current public companies would gain accommodations now reserved for smaller or emerging issuers, while newly public companies could keep them for as long as five years.
The smallest 18% of public companies by assets would get 30 extra days for annual 10-K filings and five extra days for quarterly 10-Q reports, a change the agency says would cut compliance costs.
The package also broadens offering flexibilities beyond well-known seasoned issuers, lets more broker-dealers publish research, and would preempt state registration requirements for all registered offerings.
Comments will be open for 60 days after Federal Register publication, with critics including Better Markets warning the lighter disclosure regime could raise investor and fraud risks.

As private markets boom, will reducing public company disclosures revive IPOs or just increase risks for everyday investors?

With corporate reporting potentially cut in half, are we paving the way for market efficiency or for rampant insider fraud?