PointofLaw.com
 Subscribe Subscribe   Find us on Twitter Follow POL on Twitter  
   
 
   

 

 

SEC Response to Letter from JOBS Act Author

| No Comments


The SEC finally responded, in a letter, to criticism leveled at the Commission by Representative Patrick McHenry (R-NC), one of the principal drafters of the 2012 JOBS Act. Representative McHenry had previously ripped the SEC's proposed rules regarding private offerings under Regulation D that would (1) require issuers to include mandatory disclaimers in general solicitation materials, (2) require issuers to file general solicitation materials with the SEC at least fifteen days before providing those materials to potential investors, and (3) generally increase the cost of compliance for issuers using general solicitations.

In its response the SEC promised to give "very careful consideration" to Representative McHenry's views, noting that its proposed rules were open for comment and that it would be premature to discuss what alternatives the SEC might purpose. In large measure, however, SEC Chair Mary Jo White largely dodged the criticism leveled by Representative McHenry and avoided any discussion of the specific points raised in his letter.

The SEC's proposed Regulation D rules are still pending public comment until September 23, 2013.

Perhaps one of the more interesting points out of the letter is the SEC's estimate of how many staff hours were devoted to the preparation of the proposed rule: 3,538 hours. That is roughly equivalent to the billable time that two associates in a large law firm would generate in an entire year.

Leave a comment

Once submitted, the comment will first be reviewed by our editors and is not guaranteed to be published. Point of Law editors reserve the right to edit, delete, move, or mark as spam any and all comments. They also have the right to block access to any one or group from commenting or from the entire blog. A comment which does not add to the conversation, runs of on an inappropriate tangent, or kills the conversation may be edited, moved, or deleted.

The views and opinions of those providing comments are those of the author of the comment alone, and even if allowed onto the site do not reflect the opinions of Point of Law bloggers or the Manhattan Institute for Policy Research or any employee thereof. Comments submitted to Point of Law are the sole responsibility of their authors, and the author will take full responsibility for the comment, including any asserted liability for defamation or any other cause of action, and neither the Manhattan Institute nor its insurance carriers will assume responsibility for the comment merely because the Institute has provided the forum for its posting.

Related Entries:

 

 


Isaac Gorodetski
Project Manager,
Center for Legal Policy at the
Manhattan Institute
igorodetski@manhattan-institute.org

Katherine Lazarski
Press Officer,
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.