Will JOBS Act Repeal Ban on General Solicitation?
March 20, 2012 § 2 Comments
On March 8, the House overwhelmingly passed the Jumpstart Our Business Startups (JOBS) Act. The Act would allow crowdfunded equity offerings and, more importantly for private fund managers, would remove the ban on general solicitation and advertising from Regulation D.
Repealing the prohibition would vastly increase the ways in which private funds could reach out to prospective investors. The SEC and state regulators meanwhile are concerned that a repeal would open the doors to widespread abuse and investor fraud.
INVESTMENT ADVISER LAW BLOG 