NASAA Urges SEC to Revise Reg. A Proposal

The North American Securities Administrators Association ("NASAA") submitted comments to the SEC urging the agency to make substantial revisions to its Proposed Rule Amendments for Small and Additional Issues Exemptions under Securities Act Section 3(b), or Regulation A ("Reg. A"), to remove potential harm to issuers and investors, "especially those of modest means."

According to the comment letter, the SEC's "attempt to preempt state registration in the proposal exceeds the Commission's statutory authority and fails to adequately consider all relevant costs and potential harm to both issuers and investors." NASAA recommended that the SEC withdraw the preemptive provisions from the Reg. A proposal and work with state securities regulators to pursue follow-up rulemakings that would promote the use of Reg. A "as intended by Congress."

See: NASAA Comment Letter; NASAA Press Release. See also:Current Version of Regulation A (subscribers only). Related news: SEC Proposes Amendments to Reg. A to Increase Access to Capital for Smaller Companies (December 18, 2013).