December 13, 2012
Many commentators have suggested that the SEC needs to implement the "Bad Actor" rules under Dodd Frank prior to finalizing the rules lifting the ban on general solicitation. Some media reports have suggested that at least one of the SEC commissioners oppose the Bad Actor rules as proposed, but do support implementing the final rules under the JOBS Act to lift the ban on general solicitation. I fundamentially believe in more freedom for the America people, which includes less regulation and government intervention. I believe all investors should have a choice to invest in anything they want, regardless of their net worth or income levels and believe issuers should be able to reach as many potential investors as possible in a cost effective and efficient manner, which inludes general solicitation. However, I also realize that the SEC will not please everyone, including me, regardless of the final rules that are implemented. This is no excuse for inaction, and I am appalled by the bureaucracy at the SEC and their lack of inaction on the JOBS Act, which mandated that the SEC implement a simple rule to lift the ban on general solicitation. Therefore, I would suggest that any commissioners that oppose the Bad Actor rules, but support the JOBS Act, and those that oppose the JOBS Act without the Bad Actor rules, should reach a compromise and immediately implement both final rules. The key here is to act immediately. The SEC has had plenty of time to evaluate the comments and implement the final rules, but has evidently decided the laws imposed by Congress do not apply to them, while at the same time making headlines by going after others who choose not to follow the law. This double standard should be unacceptable and some major reforms of the SEC's power seems appropriate if they continue to choose to ignore the laws imposed by our lawmakers. Many small businesses are suffering from lack of access to capital and many investors are missing potential investment opportunities because the SEC chooses to ignore the will of Congress. This is unacceptable, especially given the high unemployment rate and slow economic activity in the U.S. The SEC should act immediately to implement its proposed rule to lift the ban on general solicitation, even if it means some commissioners have to compromise on the Bad Actor rules in order to get it done. There is no reason this shouldn't be done before the end of this year. Please, don't just stand there, do something