MFA Comment Letter on the SEC's Implementation of the JOBS Act

The MFA has submitted a comment letter to the SEC in response to its proposed implementation ofJOBS Act Section 201 ("Modification of Exemption"), in which the MFA responded to recommendations proposed by the SEC's Investor Advisory Committee for the SEC to make certain changes to the private offering framework and related regulations in connection with its implementation of the JOBS Act.

The MFA's principal recommendations and commendations were as follows:

• agreed that the filing of Form D, or some other regulatory form, be made a condition to relying on Regulation D, provided that an issuer would have sufficient opportunity to correct any minor technical mistakes while maintaining its reliance on Regulation D;
• did not agree that solicitation materials used by funds should be required to be filed with the SEC given that such materials would be retained by the funds and available for SEC examinations;
• requested that the SEC allow funds in certain circumstances to rely on an investor's certification that it is an accredited investor;
• asserted that current rules on the reporting of performance information are sufficient and do not require further supplementing;
• took the view that the definition of "accredited investor" should be based on objective, quantitative measures; and
• suggested some modifications in the SEC's proposed "bad actor" rules.

Click hereto view letter in full (links externally to MFA website).For a comprehensive listing of JOBS Act related news items, link toCurrent Topics - JOBS Act.