Header graphic for print
MoFo Jumpstarter For jumpstarts, upstarts and start-ups

SEC Investor Advisory Committee Meeting

Posted in SEC News

On January 18, 2013, the Investor Advisory Committee held its first meeting of the new year.  SEC Chair Walters provided some opening remarks (seehttp://www.sec.gov/news/speech/2013/spch011813ebw.htm) in which she emphasized the Commission’s intentions of moving forward efficiently with the rulemaking required by Dodd-Frank and by the JOBS Act.  She commented on the pace of change in the capital markets, remarking that “the JOBS Act brought another seismic shift in the way companies, particularly small and emerging ones, raise capital and how individual investors participate in that process.”  She noted that the SEC will remain focused on investor protection and on the retail investor.  She emphasized that the Committee represents the interests of retail investors, and commended the Committee for its work on recommendations relating to the proposed Rule 506 rulemaking.  We commented on the Committee’s recommendations in our prior post—see http://www.mofojumpstarter.com/2012/10/19/secs-investment-advisory-committee-recommends-filing-of-general-solicitation-material/.

Commissioner Aguilar, also addressing the Committee (see Aguilar’s comments at http://www.sec.gov/news/speech/2013/spch011813laa.htm), thanked the Committee for the recommendations on the proposed Rule 506 rulemaking.  He noted that pursuant to Section 911 of the Dodd-Frank Act, the Commission is ‘required to “review the findings and recommendations of the Committee.’ In particular, the statute specifies that, “each time the Committee submits a finding or recommendation to the Commission,” the Commission is required to  ‘… promptly issue a public statement –(A) assessing the finding or recommendation of the Committee; and (B) disclosing the action, if any, the Commission intends to take with respect to the finding or recommendation.”  Commissioner Aguilar noted that he expects that the Commission will issue the response required by the Dodd-Frank Act to the Committee’s recommendations on general solicitation.

During the Committee’s meeting session, the members noted their intention to focus on, among other things, implementation of the JOBS Act, and mentioned their ongoing work to produce recommendations related to crowdfunding.

The webcast for the Committee’s meeting is available here: http://www.sec.gov/news/otherwebcasts/2013/iac011813.shtml.