On April 11, 2012, the Securities and Exchange Commission (SEC) announced it will accept comments prior to creating rules required by the Jumpstart Our Business Startups (JOBS) Act. The SEC believes it is important to hear the public’s opinion before releasing proposed rules. It previously requested comments before rulemaking when the Dodd Frank Wall Street Reform and Consumer Protection Act was passed.
The SEC will disclose all information pertaining to the JOBS Act on its website. This will include all meetings with interested parties. The meeting participants must provide an agenda of intended topics in advance, which will be released to the public. The participants will also be encouraged to submit written comments to the public file in order for other interested parties to review the information.
Individuals can post comments on the SEC’s website. The SEC has provided a series of links organized by titles of the JOBS Act. The seven titles of interest are: Reopening American Capital Markets to Emerging Growth Companies; Access to Capital for Job Creators; Crowdfunding; Small Company Capital Formation; Private Company Flexibility and Growth; Capital Expansion; and Outreach on Changes to the Law.
The SEC has already received forty-one comments on the various titles. Twenty-four of the comments relate to the crowdfunding provision.
The SEC will post all the comments received on their website. All submissions will be posted without change, and the SEC does not edit personal identifying information. Before submitting comments; therefore, an individual needs to ensure that he/she wants it made publically available.
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