SEC votes to change securities rules

The Securities and Exchange Commission has voted to potentially change the rules governing the securities market.

The SEC voted to propose amendments to Securities Act Rule 701, which provides an exemption from registration for the issuance of compensatory securities by non-reporting issuers, and Form S-8, the Securities Act registration statement for compensatory offerings by reporting issuers.

Moreover, the regulator proposed rules to permit, on a temporary basis and subject to certain conditions, an issuer to provide equity compensation to certain “platform workers” who provide services available through the issuer’s technology-based marketplace platform.

“Today’s proposed amendments seek to modernize our requirements for including company securities in worker-company compensation arrangements so that workers have the opportunity to share in the growth of the business,” said Jay Clayton, chairman of the SEC.  “I thank the staff for their continued efforts to review and improve our rules to better align them with today’s employment practices and the economy more generally.”

The public comment period for the proposed rule amendments will remain open for 60 days following publication of the release in the Federal Register.

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