AIMA

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. General solicitation and general advertising will remain prohibited until the SEC rules are finalised.

Key legislative documents

JOBS Act (April 2012)

SEC Proposed Rules (August 2012)

AIMA documents

Briefing Note - Proposed SEC Rules to implement the JOBS Act (October 2012)