As we previously reported, the JOBS Act, adopted by Congress in April, required the Securities and Exchange Commission to publish rules by July 4, 2012, that would lift the prohibition on general solicitation and advertising in Regulation D offerings when sold only to accredited investors.
On Thursday, June 28, 2012, SEC chairman Mary Schapiro testified before a U.S. House Subcommittee that the SEC will miss that deadline.
Chairman Schapiro said in her published statement that the time limits imposed by the JOBS Act are "not achievable. Here, the 90 day deadline does not provide a realistic time frame for the drafting of the new rules, the preparation of an accompanying economic analysis, the proper review by the Commission, and an opportunity for public input." She said that the SEC staff, which has formed several committees to address the JOBS Act mandates, has made "significant progress on a recommendation and economic analysis," and she expressed the belief that the Commission would "be in a position to act on a staff proposal in the very near future."
On Monday, July 2, 2012, the SEC published a Sunshine Act notice announcing that on August 22, 2012, it will hold an open meeting to consider rules to eliminate the prohibition against general solicitation and advertising in securities offerings conducted under Regulation D, Rule 506, and Rule 144A, as mandated by the JOBS Act.
For a text version of Ms. Schapiro's written statement, please click here.
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