After last month’s issues with the Facebook Inc. initial public offering (“IPO”), a bipartisan group legislators have asked the Securities and Exchange Commission (“SEC”) to overhaul the IPO process, claiming that the current system unfairly punishes small investors. In a letter to SEC Chairman Mary Shapiro dated June 19, 2012, Rep. Darrell Issa (R., Calif.) requested that the SEC revamp rules for pricing and disclosure in IPOs. A full copy of Rep. Issa’s letter can be read here.

Rep. Issa’s letter poses 34 questions and requests for information for the SEC to respond. The letter focuses on the importance for the U.S. to modernize its regulations to stay competitive for capital in a fierce global market. The letter concludes by asking the SEC to re-examine the Securities Act of 1933, and for the SEC to consider taking “advantage of the vast improvements in communications technology to protect investors while unleashing capital formation to strengthen our economy.”