MFA Submits Letter in Response to SEC Proposal to Implement JOBS Act

MFA submitted a comment letter to the SEC in response to its proposed implementation of JOBS ActSection 201 ("Modification of exemption"). In this letter, MFA expressed support for the SEC's proposed approach for an issuer to take reasonable steps to verify that a purchaser is an accredited investor. MFA recommended, however, that the SEC include a safe harbor in the final version of Rule 506(c) that would deem an issuer to have complied with the verification requirement if a purchaser does the following: (i) provides certifications that it is an accredited investor and has not obtained financing for the transaction, and (ii) meets a certain minimum investment level as determined by the SEC.

View letter here(links externally to MFA website).See also: Yesterday's news items as to comments on the SEC proposal from (i)SIFMA and (ii)NASAA.