Free Writings + Perspectives

News and Views on Securities Regulation and Capital Formation

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AICPA Expands Permitted Situations for Agreed-Upon Procedures Engagements

January 14, 2020

In December 2019, the American Institute of Certified Public Accountants (AICPA) revised its attestation standards to eliminate certain requirements for Agreed-Upon Procedures (AUP) engagements, thereby expanding the types of situations these engagements can be performed by independent accountants. An AUP engagement is an attestation engagement in which a company engages an independent accountant to perform specific procedures on a subject matter and report its findings without providing an opinion or conclusion. The subject matter may…

Free Writings + Perspectives

The Road to the IPO: Late Stage Private Placements and IPO Readiness

By Michael Kraines

January 13, 2020

Tuesday, January 28, 2020 9:00 a.m. – 9:30 a.m. Registration/Breakfast 9:30 a.m. – 11:00 a.m. Program To register, please click here. While the IPO market remains active, companies continue to raise large sums of private capital through late stage private placements, with companies now taking an average of seven years to IPO. However, late stage investors and IPO investors expect that, from a corporate governance and financial accounting perspective, companies will begin preparing for their…

Free Writings + Perspectives

Legal Update: Proposed Amendments to the Accredited Investor Definition

By Brian Hirshberg & Anna T. Pinedo

January 8, 2020

On December 18, 2019, the Securities and Exchange Commission (“SEC”) proposed amendments to the definition of “accredited investor” and related amendments to the definition of “qualified institutional buyer.” The proposed amendments would have the effect, if adopted, of broadening the universe of individuals and entities that would qualify as accredited investors. Read our Legal Update.…

Free Writings + Perspectives

SEC’s Capital Call

By Carlos Juarez

January 7, 2020

Today, the SEC’s Office for the Advocate for Small Business Capital Formation announced it will host its first Capital Call on January 23, 2020 at 1 pm ET. This virtual conference will focus on the latest trends relating to capital formation by companies, ranging from startups to small cap companies, and will provide participants with an overview of the Office’s activity in 2019. The Office will also review the recommendations it has made to the…

Free Writings + Perspectives

Legal Update: Ring in the New Year with SEC Year-End Guidance

By Laura D. Richman, Ryan Castillo, Robert F. Gray & Brian Hirshberg

January 7, 2020

During the last two weeks of 2019, the US Securities and Exchange Commission offered guidance and reminders relating to the role of audit committees, international intellectual property and technology risks, and confidential treatment applications. This Legal Update provides further detail on—and discusses practical considerations regarding—these pronouncements, which public companies should take into account as the new year begins. Read our Legal Update.…

Free Writings + Perspectives

Year-End Reminders on The Role of Audit Committees

By Anna T. Pinedo

January 3, 2020

On December 30, 2019, the Chair of the Securities and Exchange Commission, the SEC’s Chief Accountant, and the Director of the SEC’s Division of Corporation Finance issued a joint statement regarding the role of audit committees in financial reporting, as well as their oversight responsibilities. The statement reminds audit committees, in connection with year-end reporting, that: The audit committee contributes to setting the tone for a company’s financial reporting, contributing to creating and maintaining an…

Free Writings + Perspectives

AICPA Issues Statements on Standards Amending Concept of Materiality

By Ryan L. Eickel

January 2, 2020

The American Institute of Certified Public Accountants (“AICPA”) Auditing Standards Board issued Statement on Auditing Standards No. 138 and Statement on Standards for Attestation Engagements No. 20 to amend the concept of materiality in the context of both audits of financial statements and attestation engagements. Under the previous standards, misstatements, including omissions, were considered to be material if they, individually or in the aggregate, “could reasonably be expected to influence the economic decisions of users.”…

Free Writings + Perspectives

Investor Advisory Committee Meeting

By Anna T. Pinedo

January 2, 2020

The Securities and Exchange Commission announced the agenda for the upcoming meeting on January 24, 2020 of its Investor Advisory Committee. The Committee will hold a telephonic meeting and will consider the SEC’s proxy voting advice and Rule 14a-8 proposed rulemakings, as well as market structure issues related to rebate tier disclosure. For information on joining the meeting, click here. The agenda can be found here.…

Free Writings + Perspectives

Investor Advocate Report

By Anna T. Pinedo

December 29, 2019

Recently, the SEC’s Office of the Investor Advocate released its report on its fiscal 2019 activities. The report cites staffing challenges that have impaired the ability of the SEC’s Ombudsmen to respond to matters brought by investors, which tripled in number during the fiscal year. The report reviews the Office’s activities in nine areas: public company disclosure, equity market structure, fixed income market reforms, accounting and auditing, standards of conduct for broker-dealers and investment advisers,…

Free Writings + Perspectives

SEC Commissioner Jackson Sends Letter to Congress

By Brian Hirshberg

December 27, 2019

On November 18, 2019, Securities and Exchange Commission (the “SEC”) Commissioner Robert Jackson sent a letter to Representative Carolyn Maloney attributing the lack of public disclosure regarding the political spending habits of public companies to the influence of institutional investors. Commissioner Jackson publicly supported imposing corporate political spending disclosure requirements on public companies prior to his joining the SEC in 2018. In the letter, Commissioner Jackson noted that institutional investors, which vote large blocks of…

Free Writings + Perspectives

News and Views on Securities Regulation and Capital Formation

Blog Authors

AICPA Expands Permitted Situations for Agreed-Upon Procedures Engagements

The Road to the IPO: Late Stage Private Placements and IPO Readiness

Legal Update: Proposed Amendments to the Accredited Investor Definition

SEC’s Capital Call

Legal Update: Ring in the New Year with SEC Year-End Guidance

Year-End Reminders on The Role of Audit Committees

AICPA Issues Statements on Standards Amending Concept of Materiality

Investor Advisory Committee Meeting

Investor Advocate Report

SEC Commissioner Jackson Sends Letter to Congress

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