Section 201 of the recently passed Jumpstart Our Business Startups Act will change the advertising limits on private funds and any other company that raises capital through the private placement safe harbor in Rule 506 of Regulation D. That rule has historically prevented the use of general solicitation and advertising in selling private fund interests. … Read more »
Tag: JOBS Act
Update on the new regulations and how they will impact you going forward
These are my notes from the “Update on the new regulations and how they will impact you going forward” session at the Private Fund Compliance Forum 2012. Excuse the typos and rambling nature. They are just my raw notes. Moderator: Karen Barr, General Counsel, Investment Adviser Association Panel Members: Jason E. Brown, Partner, Ropes & … Read more »
Will Private Funds Be Excluded?
Title II of the Jumpstart Our Business Startups Act directs the SEC to lift the ban on general solicitation and advertising under Rule 506 of Regulation D. That rule creates a safe harbor that deems the covered transactions to not involve any public offering within the meaning of section 4(2) of the Securities Act. However, … Read more »
Steps to Determine if an Investor is Accredited
Private funds will be able to advertise and solicit for investor, provided all of the investors are “accredited investors.” The Jumpstart Our Business Startups Act will dramatically change the way capital raising for private funds operates. The drawback is the loss of 35 non-accredited investors in the fund. That exception has been eliminated. Funds will … Read more »
Compliance Bits and Pieces – JOBS Act Edition
The Jumpstart Our Business Startups Act is soon to be law. Here is a smattering of post that caught my attention. In spite of what you may heave heard, the Senate just effectively killed crowdfunding by Alexander J. Davie The replacement crowdfunding bill is significantly more complex and fraught with liability for issuers. While even … Read more »
Accredited Investors and the JOBS Act
The Jumpstart Our Business Startups Act repeals the SEC’s ban on general solicitation and advertising under Rule 506. That is the exemption from registration used by most private fund managers. Is this a good thing? I didn’t like the ban, mostly because it was so broad. The SEC gave little guidance as to what was … Read more »
Next Steps for the JOBS Act
The Jumpstart Our Business Startups Act, as amended by the Senate, was voted on by the House of Representatives yesterday and passed 380 to 41. That makes it a very bi-partisan bill, even though all 41 “Nays” were Democrats. If I remember my Schoolhouse Rocks song correctly, it’s up to the President to sign it … Read more »
Lifting the Ban on General Solicitation and General Advertising
On Thursday afternoon, the US Senate passed the Jumpstart Our Business Startups Act, a bill designed to make it easier for small companies to raise capital. The centerpiece of the legislation is the crowdfunding provision. However, the Senate passed an amendment to that section of the legislation. That means the Senate version and the House … Read more »
How Do State Regulators Really Feel About the JOBS Act?
The House of Representatives recently voted to pass The Jumpstart Our Business Startups (JOBS) Act (H.R. 3606), a collection of several bills focused on barriers to capital formation. I’m focused on the bill because of mostly because of the Access to Capital for Job Creators section that would override the ban on general solicitation and … Read more »