Date Added: Feb 2009
Heard of Hotel California or the roach motel? In March 2007, the SEC's passed Rule 12h-6, which loosed the regulations of the 1933/1934 Exchange and Securities Acts. The rule required foreign firms which listed on the New York Stock Exchange (NYSE) to register their firms and maintain registration with the SEC as long as there were 300 shareholders of record. Thus foreign firms that wanted the benefits of access to U.S. capital markets were held accountable to all the investor protections, including reporting requirements, laws and enforcements as long as there were over 300 U.S. shareholders of record.