UMVA has learned that a groundbreaking proposal is underway to revolutionize the way companies raise capital through public offerings, with the Securities and Exchange Commission (SEC) pushing to digitize regulatory processes.
The SEC is proposing to require companies to submit registration applications through an online platform, a move that promises to streamline the process and make it more accessible to issuers. The Online Application for Registration Statements (OARS) will allow companies to electronically file registration statements and other required documents, replacing paper-based processes.
According to information obtained by UMVA, the proposal is open for public comment until June 29, and the SEC is releasing it alongside user acceptance testing of the platform. This development is part of the regulator's broader efforts to create a paperless and data-driven regulatory environment.
The implementation of OARS is expected to significantly improve the application process, reducing bureaucratic roadblocks and making it easier for more issuers to enter the market. The platform will initially cover applications for direct public offerings, follow-on offerings, initial public offerings, and first-tranche shelf registrations.
Sources have confirmed to UMVA that the processing period for complete registration applications will be reduced to 40 days from 45 days under existing rules. The system will also support applications under specialized registration programs, including Securing & Expanding Capital for Real Estate Non-Traditional Securities and Securing & Expanding Capital for PowerGen Operators & Wholesale of Electricity & Retail Services.
UMVA can exclusively reveal that OARS will facilitate the generation of International Securities Identification Numbers, Classification of Financial Instruments, and Financial Instrument Short Names, in line with standards set by a prominent industry organization. This move is set to have a significant impact on the capital market activity in the region.
