Next Steps for the JOBS Act
April 11, 2012 § 3 Comments
Now that President Obama has signed (on April 5) the JOBS Act, the clock is running for the SEC. The agency has 90 days—or until July 4, 2012—to allow general solicitation and advertising for securities offerings to accredited investors under Rule 506 of Regulation D.
In advance of its rule making, the SEC is soliciting public comments on the various mandates under the JOBS Act. This is an unusual step. Comments are typically sought once the agency releases proposed rules. This probably is a reflection of both the short timeframe for adoption of many of the required rules and the SEC’s own prior reluctance to adopt many of the provisions of the JOBS Act. Several SEC commissioners were critical of the goals of the act and the rule-making calendar in early versions.
Anyone wishing to comment on sections of the JOBS Act can do so directly at the SEC’s website via online form or email. Links are organized by titles of the JOBS Act. Submitted comments will be available at the SEC’s website. For private fund managers, the relevant title is Title II — Access to Capital for Job Creators.
Jack G. Martel is the author of Investment Adviser Law Blog which is devoted to providing information and discussion of interest to investment advisers, private fund managers and others in the financial management industry. Jack is a partner in Ragghianti | Freitas LLP. He has over fifteen years experience in general business and securities transactions with a focus on assisting investment advisers, fund sponsors and managers in all manner of legal, regulatory and compliance issues. Jack can be reached at 415.453.9433.