Faster Approvals Don’t Mean Less Liability, SEC Warns

[kevin1]

Despite streamlined timelines, the SEC stresses that investor protections remain fully intact.
Issuers using automatic 20-day effectiveness or accelerated effectiveness under Rule 461 still face strict liability under Sections 11 and 12(a)(2) of the Securities Act.
That means any misleading prospectus language—intentional or not—can trigger enforcement.
The message is clear: speed is up, but legal risk and due-diligence requirements remain as high as ever.

[Rimon Khan]

The SEC reminding everyone that fast approvals don’t remove responsibility.

[Nahid Hossen]

Speed is good, but compliance is still essential.