December 27, 2012
While it appears the SEC has been on holiday since the JOBS Act was passed in April, Christmas is now over and it's time for the SEC to get to work. There is still time for the SEC to show up for work for the 2012 year. A good start would be to finalize the proposed rules for removing the ban on general solicitation. I'm not sure how the SEC has come to view the mandate by Congress as a mere suggestion, but it is time for the SEC to begin following the law, just as securities issuers are required to do. The intent of Congress is to give investors the choice to invest as they see fit and to give small businesses better access to capital in an efficient and cost effective manner. Investors are best served by having the ability to choose among many different investment alternatives and should not be precluded from investing in certain offerings because they are not millionaires or do not have enough income to qualify. The definition of accredited investor should be changed to lower the net worth and income requirements. What the government calls "investor protection", is nothing more than discrimination against the middle class.
The SEC needs to act immediately to implement the final rules for removing the ban on general solicitation and should do so in a manner that gives all investors greater access to a variety of investment alternatives, even if they are not millionaires.