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Morning Consult: Right-Sized Regulations, Innovation and Investor Protection

May 20, 2015
Today, an op-ed from BIO President and CEO Jim Greenwood appeared in Morning Consult stressing the importance of investor protection by reforming eXtensible Business Reporting Language (XBRL), which is a one-size-fits-all costly reporting requirement that can harm company growth and investor returns.

Congressman Robert Hurt (R-VA) introduced a bill – the Small Company Disclosure Simplification Act (H.R. 1965) – that would provide a temporary exemption from XBRL for newly public and low-revenue companies in order to give the SEC time to reform the XBRL rules.  The House Financial Services Committee is considering the bill this week.

All companies – regardless of size – are required to use XBRL to report certain financial metrics.  The XBRL requirement exists on top of a small business’s standard compliance requirements.  Even worse, the vast majority of investors report that they don’t use XBRL, so the high costs do not buy any investor protection.  This is especially true in the biotech industry, where investors care more about scientific progress than XBRL reports.

Read the full op-ed here.