Alternative Investment Management Association
The Jumpstart Our Business Startups Act (the ‘JOBS Act’) was signed into law by President Barack Obama on 5 April 2012. The purpose of the JOBS Act is to reduce regulatory burdens for smaller companies in order to stimulate market access.
A key component of the JOBS Act is to lift the long-standing ban on general advertising for private securities offerings in the United States. This part of the JOBS Act requires the SEC to promulgate rules and/or rule amendments to implement the changes intended by the Act. On 29 August 2012, the SEC proposed new rules and rule amendments to implement the provisions of the JOBS Act and would permit the use of general solicitation when offering or selling private securities, provided that certain conditions, such as verification of the status of investors, are satisfied.
On 10 July 2013 the SEC adopted the final rules to eliminate the prohibition against engaging in general solicitation or general advertising, which became effective on 23 September 2013.
In a further pair of releases published on the same day, the SEC also adopted the final rules disqualifying felons and other 'bad actors' from participation in Rule 506 offerings and proposed amendments to Regulation D, Form D and Rule 156 under the Securities Act of 1933.
SEC Rules to implement the JOBS Act (July 2013)
JOBS Act (April 2012)
SEC Proposed Rules (August 2012)
US Private Placement - Briefing Note - SEC (January 2014)
Summary - US Private Placement (August 2013)
Briefing Note - Proposed SEC Rules to implement the JOBS Act (October 2012)