SEC weighs in on the Jobs Act

SEC weighs in on the Jobs Act

The JOBS Act (Jumpstart Our Business Startups) is now being looked at by the S.E.C. in the SEC's public comments on SEC regulatory initiatives under the JOBS Act, they stated:

“The Jumpstart Our Business Startups Act includes provisions that require the SEC to undertake various initiatives, including rulemaking and studies touching on capital formation, disclosure and registration requirements.

Members of the public interested in making their views known on these matters, even before official comment periods may be opened, are invited to submit those views via the links below.

The Commission will post all submissions on this page of the Commission's Internet Web site. All submissions received will be posted without change; we do not edit personal identifying information from submissions. You should only make submissions that you wish to make available publicly.

Members of the public who wish to submit official comments on particular rulemaking proposals should submit comments during the official comment period through the Commission's website as described in the notice of the proposal published in the Federal Register."

The New York Times reported last week:

"The JOBS Act further softens a rule restricting communication among bankers, companies, investors and analysts. The law, for instance, will bankers and analysts to meet together with an emerging growth company’s executives.

The JOBS Act also exempts small companies from various public disclosure requirements, while blessing a new form of financing to start-up companies known as crowdfunding that allows companies to go online to raise up to $1 million by pooling mass solicitations.

The law irked regulators, who argue that lighter regulations will expose investors to harm. Mary Schapiro, chairwoman of the S.E.C., warned last month that the law would “weaken investor protection.” She added that “we should not walk backwards here.”

It is unclear how regulators will respond to the JOBS Act now that it is law. The S.E.C. is unlikely to change any of its rules related to research analysts.

However, the agency will have to approve rule changes adopted by the Financial Industry Regulatory Authority, Wall Street’s self-regulator, which is likely to relax some of it policies to comply with the JOBS Act. The S.E.C. also will finalize some more minor rules, draft a study on capital formation and create a new process for smaller companies to file confidential disclosure forms.

None of the regulators has set a timetable for finalizing any changes."

We will continue to follow the regulatory changes with our partner company, Etico Capital.