The House Subcommittee on Capital Markets held a hearing on Wednesday to consider several legislative proposals designed to reduce barriers to capital formation.
One proposal includes a measure to direct the SEC to exempt non-accelerate filers with revenues of less than $1 billion from the XBRL filing requirement, Compliance Week reports.
The SEC has been criticized for its failure to crack down on repeated errors in XBRL filings that make data unreliable for users who are meant to benefit from the filing requirement. The Data Transparency Coalition said the proposal reflects “justified frustration” over the SEC’s inability to transition the filing requirement into useful data for investors.
Another House committee has requested that the SEC explain how it uses information compiled through XBRL filings and how it plans to enforce the quality of the filings. The SEC announced recently that it is accepting bids from contractors to help the agency develop an XBRL software solution or another measure that would allow companies to submit both paper and e-filings in a single submission, according to Compliance Week.
Other proposals relate to small business mergers and acquisition issues, emerging growth companies and credit availability. The subcommittee is considering allowing certain emerging growth firms to increase their stocks’ tick size and to amend certain securities laws related to the treatment of emerging growth firms.
“On top of the JOBS Act, more can and should be done to help small businesses raise much-needed capital to grow and create more jobs during this period of record-breaking government red tape, tepid economic growth, and persistently-high unemployment,” Subcommittee Chairman Scott Garrett (R-N.J.) said.