Senate Bill Seeks Expanded SEC Registration of Private Companies (Registered Funds Regulatory Update)
10.11.22
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(Article from Registered Funds Regulatory Update, October 2022)
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In September, a bill was introduced in the Senate that would require certain large privately held companies to register with the SEC. Specifically, the bill would require a private company to register with the SEC within 18 months after the end of the first fiscal year when (a) the company’s valuation exceeds $700 million (excluding the value of shares held by affiliates of the company), or (b) the company’s revenues exceed $5 billion and it has at least 5,000 employees. The bill would also require such an issuer to submit an annual certification of the value of its shares held by affiliates. Notably, the bill authorizes the SEC to exempt certain investment companies from the registration requirements.
Private Markets Transparency and Accountability Act, S. 4857, 117th Cong. (2022), available at:
https://www.congress.gov/117/bills/s4857/BILLS-117s4857is.pdf.