Banking Groups Urge SEC to Keep Form S-3 Rules, Warning of Capital Access Curbs
Updated
Updated · American Banker · Jul 30
Banking Groups Urge SEC to Keep Form S-3 Rules, Warning of Capital Access Curbs
2 articles · Updated · American Banker · Jul 30
Summary
A July 27 comment letter from the American Bankers Association and Bank Policy Institute urged the SEC to drop proposed Form S-3 eligibility changes, saying they would make it harder for some bank holding companies to raise capital.
Form S-3 shelf registration lets eligible issuers pre-register securities and sell quickly when funding is needed; the groups said banks depend on that flexibility to refinance debt, meet regulatory expectations and respond during market stress.
The trade groups argued banks would be hit harder than other public companies because they are heavy Form S-3 users and face extensive issuer- and subsidiary-level oversight that could more easily trigger “ineligible issuer” status.
SIFMA filed a similar letter, saying the SEC had not identified an investor-protection problem serious enough to justify tighter limits, while the agency declined to say whether it may revise the proposal.