Bill Overview
Title: To amend the Securities Act of 1933 to expand the research report exception to include reports about any issuer that undertakes a proposed offering of public securities.
Description: This bill allows a securities broker or dealer to publish or distribute a research report on a proposed public offering without it being considered an offer to sell securities for purposes of registration requirements. Currently, reports regarding a proposed public offering by an emerging growth company fall under this exception.
Sponsors: Rep. Williams, Roger [R-TX-25]
Target Audience
Population: Individuals involved in the securities market globally
Estimated Size: 12000000
- The bill affects those involved in the securities market, including brokers, dealers, investors, and companies seeking to go public.
- Broadening the exception to include any issuer means potentially larger companies can also benefit from the research reports without triggering registration requirements.
- Currently, this exception is only available for emerging growth companies, typically smaller firms seeking capital and growth.
- Allowing research reports to be distributed more freely could impact market dynamics by increasing the availability of information, possibly affecting investment decisions for all market participants.
Reasoning
- The policy affects primarily those who are directly involved in the securities market, such as brokers, dealers, investors, and companies going public. Therefore, most interviewees should represent these groups.
- Consideration was given to ensure diversity in terms of demographics (age, gender, location) and job roles within the financial sector to reflect a broad spectrum of potential impacts.
- The policy's impact is likely to be low for individuals outside the financial sector, so some interviews should include such individuals for comparison.
- Given the population size and budget constraints, the policy's financial impact represents increased market efficiency rather than direct financial aid, so wellbeing scores might reflect more informational benefits rather than economic ones.
- The population involved in financial services is significant in the US, but the policy specifically affects those related to IPO processes and market analysis.
Simulated Interviews
Securities Broker (New York, NY)
Age: 35 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- I believe the policy will generally make my job easier by allowing us to distribute research reports more freely.
- This could potentially lead to better-informed clients and more active market participation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 8 |
Financial Analyst (Chicago, IL)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 10/20
Statement of Opinion:
- This policy could enhance the accuracy of market predictions due to better dissemination of research reports.
- It should improve decision-making processes both for us as analysts and for our clients.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Startup Executive (San Francisco, CA)
Age: 29 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- This change could make it easier for us to reach investors without going through as many regulatory hurdles.
- We might choose to go public sooner if this makes capital access more realistic.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
Investor (Dallas, TX)
Age: 42 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 18/20
Statement of Opinion:
- Increased access to research reports might help in identifying promising IPOs more effectively.
- It could also make the market more volatile, which is a risk for investors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Retired Banker (Boston, MA)
Age: 61 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 20/20
Statement of Opinion:
- I see this as a move towards transparency and more information for decision-making.
- Though not personally beneficial, strategically it's a positive shift for those active in the market.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Tech Entrepreneur (Seattle, WA)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 15/20
Statement of Opinion:
- Access to more research could guide when and how to enter the public market.
- This policy might reduce costs and hurdles for young companies like mine.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Public Relations Manager (Charlotte, NC)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 6.0 years
Commonness: 10/20
Statement of Opinion:
- Anything that makes IPOs smoother could help my clients better manage public relations.
- There might be fewer complications with research sharing, which traditionally causes issues.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Compliance Officer (Denver, CO)
Age: 38 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 7.5 years
Commonness: 9/20
Statement of Opinion:
- I worry about less regulatory oversight leading to risks in the financial market.
- Monitoring changes will be crucial to avoid malpractice in report distributions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Investment Advisor (Phoenix, AZ)
Age: 48 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- This policy might provide more resources for advising clients accurately.
- However, there is a risk of information overload confusing some retail clients.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Corporate Lawyer (Miami, FL)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- The policy streamlines processes for advising clients on going public.
- Could be burdensome as it may create new informational liabilities without registration.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $7000000)
Year 2: $5000000 (Low: $3000000, High: $7000000)
Year 3: $5000000 (Low: $3000000, High: $7000000)
Year 5: $5000000 (Low: $3000000, High: $7000000)
Year 10: $5000000 (Low: $3000000, High: $7000000)
Year 100: $5000000 (Low: $3000000, High: $7000000)
Key Considerations
- The main cost is regulatory oversight, with marginal increases to existing regulatory frameworks anticipated.
- Indirect benefits include potentially enhanced market efficiency due to better information dissemination.