*1 17 CFR PARTS 200, 228, 229, 230, 239, 240, 243,

249, and 274

 

S.E.C. Release No.

 

Securities Act of 1933

Securities Exchange Act of 1934

Investment Company Act of 1940

Financial Reporting

International Series

 

SECURITIES OFFERING REFORM

File No. S7-38-04

RIN 3235-AI11

July 19, 2005

 

  AGENCY: Securities and Exchange Commission.

 

  ACTION: Final rule.

 

  SUMMARY: The Securities and Exchange Commission is adopting rules that will modify and advance significantly the registration, communications, and offering processes under the Securities Act of 1933. Today's rules will eliminate unnecessary and outmoded restrictions on offerings. In addition, the rules will provide more timely investment information to investors without mandating delays in the offering process that we believe would be inconsistent with the needs of issuers for timely access to capital. The rules also will continue our long-term efforts toward integrating disclosure and processes under the Securities Act and the Securities Exchange Act of 1934. The rules will further these goals by addressing communications related to registered securities offerings, delivery of information to investors, and procedural aspects of the offering and capital formation processes.

 

  EFFECTIVE DATE: [Insert date 120 days after publication in the Federal Register].

 

  FOR FURTHER INFORMATION CONTACT: Amy M. Starr, Daniel Horwood, or Anne Nguyen, at (202) 551-3200, in the Division of Corporation Finance, U.S. Securities and Exchange Commission, 100 F Street, NE, Washington DC 20549 or, with respect to questions regarding investment companies, Kieran Brown in the Division of Investment Management, at (202) 551-6784.

 

SUPPLEMENTARY INFORMATION:

 

  We are amending Rule 30-1 [FN1] of the Administrative Practice and Procedure, Item 512 [FN2] of Regulation S-B, [FN3] Item 512 [FN4] of Regulation S-K, [FN5] and Rules 134, 137, 138, 139, 153, 158, 174, 401, 405, 408, 412, 413, 415, 418, 424, 426, 430A, 439, 456, 457, 462, 473, 497, and 902 [FN6] and eliminating Rule 434 [FN7] under the Securities Act. [FN8] We are adding Rules 159, 159A, 163, 163A, 164, 168, 169, 172, 173, 430B, 430C, and 433 under the Securities Act. We are amending Forms S-1, S-3, S-4, F-1, F-3, and F-4 and eliminating Forms S-2 and F-2 [FN9] under the Securities Act; amending Rule 100 [FN10] of Regulation FD [FN11] and Rule 14a-2 [FN12] under the Securities Exchange Act of 1934; [FN13] amending Forms 10, 10-K, 10-Q, 10-KSB, and 20-F [FN14] under the Exchange Act; and amending Form N-2 [FN15] under the Securities Act and the Investment Company Act of 1940. [FN16] 9 17 CFR 239.11; 17 CFR.239.13; 17 CFR 239.25; 17 CFR 239.31; 17 CFR 239.33; 17 CFR 239.34; 17 CFR 239.12; and 17 CFR 239.32.

 

Table of Contents

 

  *2 I. Introduction

    A. Overview

    B. Background

            1. Advances in Technology

            2. Exchange Act Reporting Standards

 

  II. Well-Known Seasoned Issuers; Other Categories of Issuers

    A. Well-Known Seasoned Issuers

            1. Definition of Well-Known Seasoned Issuer

            a. Market Capitalization Threshold

            b. Registered Offerings of Non-Convertible Securities Threshold

            2. Timing of Determination of Well-Known Seasoned Issuer Status

            3. Well-Known Seasoned Issuers' Securities Offerings

            4. Comments Regarding the Definition of Well-Known Seasoned Issuer

    B. Other Categories of Issuers

 

  III. Communications Rules

    A. Communications Requirements Prior to Today's Rules and Amendments

    B. Need for Modernization of Communications Requirements

            1. General

            2. Definition of Written Communication

            a. "Written Communication" and "Graphic Communication"

            b. Comments Regarding Proposals

    C. Overview of Communications Rules

    D. Communications Rules

            1. Permitted Continuation of Ongoing Communications During an Offering

            a. Overview

            b. Exception for Regularly Released Factual Business and Forward-looking Information - Available to Reporting Issuers

            i. Factual Business Information

            (A) Scope of the Safe Harbor

            (B) Comments on the Scope of the Safe Harbor

            ii. Forward-Looking Information

            (A) Scope of the Safe Harbor

            iii. Conditions of Safe Harbor in Rule 168

            (A) "By or on Behalf of" the Issuer

            (1) Definition

            (2) Comments on Definition

            (B) Regularly Released Information

            (1) Regularly Released Condition

            (2) Comments on Regularly Released Condition

            (C) Exclusion for Offering-Related Information

            (1) Scope of Exclusion

            (2) Comments on Exclusion

            c. Exception for Regularly Released Factual Business Information - Available to Non-Reporting Issuers

            i. Scope of the Safe Harbor

            ii. Comments on the Safe Harbor

            2. Other Permitted Communications Prior to Filing a Registration Statement

            a. 30-Day Bright-line Exclusion From the Prohibition on Offers Prior to Filing a Registration Statement - All Issuers

            i. Scope of Exclusion

            ii. Comments on 30-day Bright-line Exclusion

            b. Permitted Pre-Filing Offers for Well-Known Seasoned Issuers

            i. Overview

            ii. Exemption for Pre-Filing Offers

            iii. Comments on Exemption for Pre-Filing Offers

            3. Relaxation of Restrictions on Written Offering-Related Communications

            a. Rule 134

            i. Expansion of Permitted Information

            ii. Section 10 Prospectus Requirement

            iii. Changes to Required Information

            b. Permissible Use of Free Writing Prospectuses

            i. Overview

            ii. Definition of Free Writing Prospectus

            (A) Scope of Definition

            (B) Comments on Definition

            iii. Permitted Use of a Free Writing Prospectus After the Filing of a Registration Statement Under Rule 433

    (A) Overview

    (B) Issuer Eligibility

            *3 (1) Comments on Ineligible Issuer Definition

            (C) Conditions to Permitted Use of a Free Writing Prospectus

            (1) Prospectus Delivery or Availability

            (a) Prospectus Delivery Conditions for Non-Reporting Issuers and Unseasoned Issuers

            (b) Prospectus Availability Condition for Seasoned Issuers and Well-Known Seasoned Issuers

            (c) Comments on Prospectus Delivery or Availability Condition

            (2) Information in a Free Writing Prospectus

            (a) Information Conditions

            (b) Amendment to Rule 408

            (c) Legend Condition

            (i) Discussion

            (ii) Cure for Unintentional or Immaterial Failure to Include a Legend

            (iii) Impermissible Legends or Disclaimers

            (3) Filing Conditions

            (a) General Conditions

            (i) Scope of General Conditions

            (ii) Conditions Specific to Final Terms of the Securities or Offering

            (iii) Asset-Backed Issuers

            (iv) Comments on Filing Condition

            (b) Immaterial or Unintentional Failures to File

            (i) Scope of Cure Provision

            (ii) Comments on Cure Provision

            (4) Record Retention Condition

            (a) Discussion

            (b) Immaterial or Unintentional Failure to Retain a Free Writing Prospectus

            (D) Road Shows