JOBS Act Repeal of Advertising Restrictions Further Delayed
August 20, 2012 § 3 Comments
UPDATE: SEC Again Delays Action on Advertising Rules
The SEC was expected to issue interim or temporary rules at its open meeting on August 22 that would have permitted private fund managers and others to begin advertising in connection with Rule 506 offerings of their securities. A recent statement, however, has announced that the SEC will instead only propose rules for public comment following the SEC’s typical rulemaking process. The SEC has already missed the original July 4 deadline imposed by the JOBS Act.
The change follows public comments from the North American Securities Administrators Association, former SEC staff, and consumer and union groups. The SEC cited a desire to allow public comment on any proposed rule to minimize the risk of future legal challenges to the final rules.
Sources:
- JOBS Act Public Comments
- SEC Commissioners to Consider Fund Advertising Rules (previous post)
- SEC Will Miss Deadline for Fund Advertising Rules (previous post)
- Ready to Take Advantage of JOBS Act Changes? Be Patient (previous post)
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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.
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Have they scheduled a later date yet? Also, do you have a link to the release? Thanks in advance.
The SEC’s open meeting is still scheduled for August 22. At that meeting the SEC has said they will issue proposed rules for public comment–typically for a period between 30 and 60 days. After that comment period, final rules will be issued. Best guess is that final rules will be issued sometime this fall.
First notice of the rulemaking delay appears to have been a telephone call from Chairman Schapiro to Patrick McHenry, Oversight Financial Services Subcommittee Chairman. A copy of Chairman McHenry’s response to Chairman Schapiro (and discussion of the SEC’s delay) can be found at: http://bit.ly/OHAB5t.
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