On June 22, Assistant Professor of Law Ryan Bubb moderated a roundtable discussion at the Law School on the Jumpstart Our Business Startups Act (JOBS Act), which was signed into law in April.
The roundtable convened market participants, lawyers, regulators, and academics to discuss the implementation of the JOBS Act’s mandate that the Securities and Exchange Commission eliminate the ban on general solicitation for certain private placements exempt from SEC registration. Questions discussed at the roundtable included:
· What types of advertising and solicitations will market participants use in private placements once the ban is lifted?
· Should regulators mandate certain disclosures in advertisements for private placements or otherwise regulate the content of such advertisements?
· What process should issuers be required to use to verify investors’ accredited investor status?
· How does the lifting of the ban on general solicitation for certain private placements affect the appropriate income and wealth thresholds for accredited investor status?
In addition to participants from the U.S. Treasury Department, the White House National Economic Council, and the White House Office of Science and Technology Policy, representatives from the SEC and FINRA attended the roundtable as observers. The goal of the event was to inform implementation of the general solicitation provisions of the JOBS Act through presentation of diverse perspectives on the costs and benefits of alternative approaches.
Posted on June 22, 2012