In what seems to be a (potentially temporary) victory for the startup industry, the SEC announced late last Friday that they are re-opening the comment period (which initially ended on September 23) for an additional 30 days for the controversial proposed JOBS Acts rules that would require
- An advance Form D filing 15 days BEFORE any general solicitation
- Filing of all general solicitation materials with the SEC
- Lengthy legends on all written general solicitation material
- Harsh penalties
For additional background on these proposed rules, check out our previous post Proposed Form D Rules: The Good, The Bad and the Ugly.
The extension follows almost universal opposition to these rules by the startup industry as well as a letter from Congressman Patrick McHenry, the sponsor of the JOBS Act legislation, indicating that the original analysis in the proposal may have been deficient and requesting the SEC to re-open the comment period and to publish supplemental analysis.
This means that the proposed requirements above are likely to be further delayed, which seems to be great news for those of us in the startup industry. For details on the extension and some great commentary on what this might mean, check out Sam Guzik‘s post this morning: SEC Extends Comment Period for JOBS Act Rule 506 Proposed Rulemaking – Is the SEC About to Pivot?
This post was written by James Han on September 30, 2013
SEC Re-opens Comment Period for Proposed JOBS Act Rules