September 8, 2012
The prohibition against general solicitation and general advertising should be abolished in favor of disclaimers that provide access to, or a presentation of, all pertinent facts available for an informed decision, in which the issuer must provide without demand. The issuer must then show such reporting, or be restricted to spend investment monies received, other than from friends and family, only for the time spent on, or external audit for, to supply or correct such reports as requested by investors. The issuer would then also be required to submit within 45 days an updated list of unqualified investors and their known addresses to the SEC, along with a copy of the company's decision of intent to declare dividends upon meeting what applicable criteria and circumstance.
Otherwise, the loosening of the responsibility to protect unqualified buyers, according to the "reasonable belief" clause, neither provides small business with the means nor provides unqualified or non-institutional buyers with sufficient protection.