NASAA - Comment Letter requesting the SEC to delay JOBS Act rule

The NASAA requested the SEC to go slowly in drafting a rule to lift the ban on companies advertising to investors before public offerings. The law included a 90-day deadline for the SEC to implement the rule lifting the ban. Because it missed the deadline, the SEC is reported to be considering adopting an interim resolution that would immediately lift the advertising ban. However, NASAA has strongly urged the SEC to follow its normal course of publishing the proposed rule for public comment before it becomes effective. In this regard, NASAA's letter takes it as a given that the JOBS Act will result in a meaningful increase in securities fraud in offerings, and that the potential damage from such fraud must be weighed in considering the cost/benefit of any rules adopted to implement the JOBS Act.

[Lofchie Comment: NASAA indicates that the SEC is being pressured by Congess to rush forward the implementation of the JOBS Act. That may be so, but this also represents a policy divide between the federal governmente and the states. In this regard, see (i) President Obama's statement on the adoption of the JOBS Act; and (ii) statement from House Republicans praising the potential benefits of the JOBS Act."]

Cross-Reference(s): Cadwalader Guide to Blue Sky Law; JOBS Act; JOBS Act Section Summaries; Exchange Act Blacklines (showing JOBS Act statutory amendments); Securities Act Blacklines (showing JOBS Act statutory amendments).

View comment letter in full here (links externally to NASAA website).