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