SEC Releases Financial Report; Signals “Quick, Pragmatic” Implementation of JOBS Act in 2013
The Securities and Exchange Commission (SEC) released its annual financial report recently. At various points throughout the report, the SEC notes that it has worked and will continue to work to implement the JOBS Act in a quick, pragmatic manner. Also, the report points out that the SEC will attempt to maintain the congressional intent behind the Act in its rulemaking.
The Commission stated in its Management Discussion and Analysis report that it will work to implement the JOBS Act in a “practical manner that reflects the entrepreneurial dynamics of the digital age.” Our interpretation: The SEC will attempt to tailor the rules in a way that recognizes the importance of modern technology’s impact on the private placement markets. The SEC also stated that it will:
- Engage in rulemaking to implement the JOBS Act’s provisions, including modifying the general solicitation ban in Rule 506 of Regulation D, and implementing exemptions under the Securities Act for “crowdfunding” offerings.
- Provide guidelines to issuers and their advisors on the implementation and application of the JOBS Act.
- Complete a study of Regulation S-K in order to determine how it might be updated to modernize and simplify the registration process and reduce the costs for emerging companies.
All of this is good news. Whether or not we see action is the question at this point. The positive thing is that as of late there seems to be more of a discussion brewing at both the SEC and FINRA in terms of rulemaking and implementation of the JOBS Act.
Check out last week’s post for a look at the timeline for implementing the JOBS Act since it was signed into law by President Obama.