SEC Will Miss Deadline for Fund Advertising Rules

June 27, 2012 § 4 Comments

According to anticipated testimony by SEC Chairman Mary Schapiro, the SEC will miss the deadline to adopt rules that would lift the ban on advertising and general solicitation by hedge funds and other private pooled investment vehicles. « Read the rest of this entry »

Ready to Take Advantage of JOBS Act Changes? Be Patient

June 6, 2012 § 3 Comments

By now, most private fund managers are aware that the Jumpstart Our Business Startups (JOBS) Act instructed the SEC to remove the ban on general solicitation and advertising from the exemption that most funds rely on when offering their interests to investors. Many managers are anxious to begin advertising and expanding their marketing efforts. Doing so before the SEC issues its final rules, however, is extremely risky for a number of reasons summarized below. We caution managers to hold off until those rules are in place which is expected to be in early July. « Read the rest of this entry »

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.

« Read the rest of this entry »

What Should Private Funds Expect After JOBS Act Is Signed?

April 4, 2012 § 1 Comment

Much of the press coverage of the JOBS Act, justifiably, has addressed the Act’s crowdfunding provisions. For private fund managers, however, the most important development is removal of Regulation D’s prohibition on general solicitation and advertising when privately offering securities to accredited investors. The prohibition greatly limits fund managers’ ability to seek out prospective investors, respond to press inquiries and engage in other marketing activities.

In addition to simply lifting the ban on general solicitation and advertising, however, the JOBS Act instructs the SEC to determine methods that issuers must use to verify that investors are, in fact, accredited. Given the SEC’s earlier public criticism of the Act, we may see the agency adopt rules or interpretations that greatly limit how certain issuers (e.g., hedge funds and other private funds) ultimately are able to market their offerings.

« Read the rest of this entry »

Senate Lifts Ban on Private Fund General Solicitation and Advertising

March 22, 2012 § 2 Comments

As expected, the Senate passed its version of the Jumpstart Our Business Startups (JOBS) Act today with bipartisan support. The Senate bill adopted amendments to the crowdfunding provisions that differ from the version passed in the House. The chambers will need to reach a compromise on that portion of the legislation.

« Read the rest of this entry »

Where Am I?

You are currently browsing entries tagged with JOBS Act at INVESTMENT ADVISER LAW BLOG.