SEC proposes new rules to implement JOBS Act provision
about hedge fund solicitation and advertising in securities
The Securities and Exchange Commission took a nice stride today in proposing the long awaited “new rules” for General Solicitation of a Regulation D Rule 506 Securities Offering. State Regulators Chairman Maria Schapiro and her staff launched the public comment phase of the process. This next phase will allow the public to review the proposed changes and comment publicly. Under the proposed rules, which are mandated by the Jumpstart Our Business Startups Act, companies would be permitted to use general solicitation and general advertising to offer securities under Rule 506 of Regulation D of the Securities Act and Rule 144A of the Securities Act.
“I believe that the proposed rules fulfill Congressʼs clear directive that issuers be given the ability to communicate freely to attract capital, while obligating them to take steps to ensure that this ability is not used to sell securities to those who are not qualified to participate in such offerings,” said The Securities and Exchange Commission Chairman Mary Schapiro.
The Commission will seek public comment on the proposed rules for 30 days then the review the comments and determine whether to adopt the proposed rules.
[youtube id=”NFY9Y07vzQ0″ width=”600″ height=”350″]