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.
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.
California Extends Emergency Private Adviser Exemption
March 28, 2012 § 2 Comments
The California Department of Corporations this week renewed its emergency rules to extend the period in which certain fund managers can rely on the existing pre-Dodd-Frank “private adviser” exemption from California investment adviser registration.
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.
California Rules Propose Significant Changes to Private Fund Adviser Exemption
February 24, 2012 § 4 Comments
Recently, the California Department of Corporations proposed new rules that would make widespread changes to the state’s investment advisor regulatory scheme. The proposed rules would create a significant new exemption from full registration for investment advisers that advise hedge funds in California. After Dodd-Frank, advisers with less than $100 million will come under the authority of the DoC (and these proposed rules) rather than the SEC. « Read the rest of this entry »
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