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NASAA Makes Strong Push to Sway SEC's Mind on Oversight of Reg A Plus

As the Securities and Exchange Commission races this year to fully implement the Jumpstart Our Business Startups Act, it is facing a strong push by state securities regulators for a bigger role in its proposed Regulation A Plus plan. The state authorities have developed a coordinated review program that they say largely alleviates the concerns voiced by the General Accountability Office and others about the new exemption’s prospects. As of April 17, nearly all state jurisdictions in the U.S. have signed a memorandum of understanding agreeing to participate in the review program. However, the program has vocal critics who say the states have an uphill battle. The critics predict that the commission will preempt state oversight of the $50 million offerings in its final rule, in the hope of ensuring that the new regime actually is used by smaller issuers.
 
Reproduced with permission from Securities Regulation & Law Report, 46 SRLR 782 (April 21, 2014). Copyright 2014 by The Bureau of National Affairs, Inc. (800-372-1033 http://www.bna.com

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