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SEC Reschedules Private Placement Rule Proposal for August 29

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  • Baker, John
    The Securities and Exchange Commission today announced that it will consider private placement rule changes required by the Jumpstart Our Business Startups Act
    Message 1 of 1 , Aug 21, 2012
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      The Securities and Exchange Commission today announced that it will consider private placement rule changes required by the Jumpstart Our Business Startups Act on August 29, and not August 22 as previously scheduled. It may be significant that the August 29 meeting notice makes no reference to money market funds, although press reports had indicated that the SEC would propose money market fund rule changes on that date.

      According to the new open meeting notice, the SEC on August 29 will consider whether to propose rules to eliminate the prohibition against general solicitation and general advertising in securities offerings conducted pursuant to Rule 506 of Regulation D under the Securities Act of 1933 and Rule 144A under the 1933 Act, as mandated by Section 201(a) of the JOBS Act. In a separate notice, the SEC announced that it will not consider rulemaking under these provisions at the August 22 meeting. The SEC apparently will still consider adopting conflicts minerals and resource extraction rules at the August 22 meeting. Press reports indicate that the SEC previously planned also to adopt interim final rules to implement Section 201 (which specified a deadline of July 4, 2012), but now plans only to propose rule changes for comment in the normal way.

      While the JOBS Act rule changes are controversial, money market fund rule changes would be even more so. Several press reports had indicated that the SEC would propose major changes to money market fund regulation at an open meeting on August 29, but that now seems unlikely. Perhaps there was no specific proposal that could get the support of at least three of the five Commissioners. It is still possible, of course, that a rule proposal could be made at a later time.


      The announcement of the change to the August 22 meeting, with a link to the new August 29 meeting notice, is at

      http://www.sec.gov/news/openmeetings/2012/ssamtg082212-deletion.htm

      An Investment News article on the decision not to adopt interim final rules is at

      http://www.investmentnews.com/article/20120817/FREE/120819918

      An earlier Investment News article discussing the supposed money market fund rule changes is at

      http://www.investmentnews.com/article/20120808/FREE/120809939

      For my prior post on the August 22 meeting, see

      http://groups.yahoo.com/group/FundLaw/message/1354



      John M. Baker <JMB@...>
      Stradley Ronon Stevens & Young, LLP http://www.stradley.com
      1250 Connecticut Avenue, NW, Suite 500
      Washington, DC 20036
      202.419.8413
      202.822.0140 fax
      FundLaw Listowner http://groups.yahoo.com/group/fundlaw
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