On March 27, 2012, the House finally passed by a vote of 380 to 41 the JOBS (Jumpstart Our Business Startups) Act. The legislation contains an IBAT/ICBA-supported provision to raise the Securities and Exchange Commission (SEC) registration threshold for financial institutions from 500 shareholders to 2,000.
The legislation also raises the de-registration threshold from 300 to 1,200, which would allow registered community banks to de-register following a stock buyback or consolidation of shareholders.
The legislation provided the SEC up to one year to write rules enacting this provision but Senate champion Kay Bailey Hutchison went on the Senate floor earlier today to provide much needed legislative intent that the provision be effective upon the date of enactment. We will provide clarification on the effective date as soon as possible as we know that many IBAT members and community banks nationwide are anxious to utilize this important provision to grow their shareholder base and increase capital levels without incurring costly SEC registration or de-registration requirements.
Again, our sincere thanks to Senator Hutchison for her leadership on this issue.