Mary Jo White, the new chairman of the Securities and Exchange Commission, may move quickly to adopt a JOBS-Act-mandated rule allowing hedge funds and startups to advertise for investors, according to Dave Michaels and Joshua Gallu of Bloomberg (4/26/13).
In her Senate confirmation hearing, White promised to make JOBS Act implementation a priority, and Bloomberg reports that she is leaning toward approving a widely criticized draft rule as it stands, reserving the right to impose “additional protections” for investors later.
The Bloomberg article goes on to cite a joint letter – from Barbara Roper of the Consumer Federation of America, Brandon Rees of the AFL-CIO, and Lisa Donner, executive director of Americans for Financial Reform – warning against such an approach. “Some have suggested that the commission could implement the general solicitation rule based on the current proposal and pursue comment on the appropriate investor protections separately,” the letter stated. “Think of the precedent that would set — 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.”