In a speech yesterday at NASAA’s Annual Conference, Commissioner Luis Aguilar commented again on concerns regarding the potential for fraud following the relaxation of the ban on general solicitation. The Commissioner noted that he considered “the Commission’s proposal to be fatally flawed” because it did not address investor protection concerns. Commissioner Aguilar suggested that the… Continue Reading
On March 26, 2013, the SEC’s Division of Trading and Markets provided no-action relief to FundersClub Inc. and FundersClub Management LLC, indicating that the Division would not recommend enforcement action under Section 15(a)(1) of the Exchange Act if FundersClub and FundersClub Management LLC operated a platform through which its members could participate in Rule 506… Continue Reading
The NASAA Legislative Agenda (see here: http://www.nasaa.org/wp-content/uploads/2011/08/NASAA-Legislative-Agenda-113th-Congress_FINAL.pdf) includes a number of objectives that relate to the JOBS Act. As a core principle, NASAA supports policies that promote capital formation while maintaining investor protections, and, in this context, would like to see Congress strengthen investor protections “that were weakened by the JOBS Act.” In particular, the… Continue Reading
The Staff of the SEC’s Division of Trading and Markets recently published a series of FAQs addressing certain broker-dealer matters arising in connection with Title II of the JOBS Act. The FAQs are available here: http://www.sec.gov/divisions/marketreg/exemption-broker-dealer-registration-jobs-act-faq.htm. Title II of the JOBS Act formalizes the guidance that has been provided by the SEC in various no-action… Continue Reading
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… Continue Reading
Recently, Senators John Thune and Pat Toomey and a number of other senators joined the chorus urging the Securities and Exchange Commission to move forward with Rule 506 rulemaking. The letter also expresses concern with any overly prescriptive investor verification test. This is consistent with letters from the House. The text of the letter: http://www.toomey.senate.gov/?p=press_release&id=772.
Recently, Congressmen Scott Garrett, Kevin McCarthy and Patrick McHenry wrote to urge Chairman Schapiro to consider, in connection with the SEC’s Rule 506 rulemaking, the regulatory burden that may be imposed by a complex investor verification process and noted that lawmakers did not contemplate a burdensome verification process when the JOBS Act was being considered. … Continue Reading