To direct the Securities and Exchange Commission to revise section 230.163 of title 17, Code of Federal Regulations, to apply the exemption offered in such section to communications made by underwriters and dealers acting by or on behalf of a well-known seasoned issuer.

Mr. Budd introduced the following bill; which was referred to the Committee on Financial Services

To direct the Securities and Exchange Commission to revise section 230.163 of title 17, Code of Federal Regulations, to apply the exemption offered in such section to communications made by underwriters and dealers acting by or on behalf of a well-known seasoned issuer.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

This Act may be cited as the “Streamlining Communications for Investors Act”.

(a) In general.—Not later than 120 days after the date of the enactment of this section, the Securities and Exchange Commission shall revise section 230.163(c) of title 17, Code of Federal Regulations, to apply the exemption offered in section 230.163 of title 17, Code of Federal Regulations, to written and oral communications made by an underwriter or dealer acting by or on behalf of a well-known seasoned issuer if, before such a communication is made—

(1) the underwriter or dealer making such communication receives written authorization from the well-known seasoned issuer to act as its agent or representative; and

(2) the well-known seasoned issuer authorized or approved such communication.

(b) Inclusion in prospectus.—A well-known seasoned issuer shall identify in the prospectus filed for an offering each underwriter or dealer that has made oral or written communications related the offering in reliance on the exemption under section 230.163 of title 17, Code of Federal Regulations.

(c) Treatment if revisions not completed in a timely manner.—If the Commission fails to complete the revisions required by subsection (a) by the time required by such subsection, the exemption offered in section 230.163 of title 17, Code of Federal Regulations, shall be deemed to apply to written and oral communications made by an underwriter or dealer acting by or on behalf of a well-known seasoned issuer if, before such a communication is made—

(1) the underwriter or dealer making such communication receives written authorization from the well-known seasoned issuer to act as its agent or representative; and

(2) the well-known seasoned issuer authorized or approved such communication.