“Americans for Financial Reform stated that the bill is ‘fundamentally misconceived: while its proponents claim to be focused on the needs of small community banks, the substance of the bill reads more like a deregulatory wish list for big banks and other large financial players.’ AFR stated that a ‘disturbing number of lawmakers are once again willing to act as shills for Wall Street and its discredited deregulatory agenda,’ adding that it’s ‘unlikely that this dangerous bill or anything like it will become law.’”
“Without real built-in investor-protection standards, we are seriously concerned that this rule will open the door to mass marketing of hedge funds and other risky and often illiquid ‘private’ securities in a market where abuses are common and SEC oversight is very limited. Fraud and abuse are not good for investors; they’re not good for capital markets, either.”
“Think of the precedent… rushing forward with the aspects of the rule supported by industry while offering the faint possibility that the commission might one day get around to addressing the concerns raised by investors.”
In a telephone press conference co-hosted by Americans for Financial Reform, investor advocates and the president of a state securities regulators’ group sharply criticized the SEC’s proposed rule to permit the mass marketing of private stock offerings. The four speakers were united in asking the
AFR Press Statement: Investor Advocates and State Securities Regulators Call on SEC to Rethink JOBS Act Rule
In a press-teleconference this afternoon, Arkansas State Securities Commissioner Heath Abshure, who is also president of the North American Securities Administrators Association, joined three investor advocates in sharply criticizing the Securities and Exchange Commission’s first JOBS Act rulemaking – one that allows the mass marketing
In a joint comment letter submitted today to the Securities and Exchange Commission, AFR and AFL-CIO expressed strong opposition to the agency’s proposed rule lifting the ban on general solicitation and advertising in private offerings. The groups called on the SEC to withdraw the rule proposal and issue a new rule incorporating reasonable safeguards to protect investors and promote market integrity.
Earlier today, the Securities and Exchange Commission (SEC) voted 4-1 to issue a proposed rule implementing the provision of the JOBS Act that allows the “general solicitation and advertising” (GS&A) of private stock offerings. Commissioner Luis Aguilar voted against releasing the proposal, pointing out that it did not include any of the enhanced protections suggested by commenters (such as CFA and AFR) to address the significantly increased investor vulnerability that will result from lifting the long-standing ban on these practices.
Consumer Federation of America Press Statement In Response to SEC Announcement Regarding JOBS Act Rulemaking
In a major victory for investors, SEC Chairman confirmed earlier today that the Commission was changing course and would follow the traditional rulemaking procedures – proposing a rule and offering an opportunity for public comment – before lifting the solicitation ban.
The JOBS Act rulemaking on the SEC’s schedule Aug. 22 raises a variety of complex issues that demand a full and transparent rulemaking process. The rushed approach to rulemaking reportedly contemplated by the agency would not allow for full consideration of these issues, and would therefore put investors at risk.
AFR issued a press statement urging the SEC to abandone its rushed JOBS Act Rulemaking, which could put investors at risk.