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Report by 14 Firms on Immediate Effect of JOBS Act on Private Placements Released
Practical Law Legal Update 2-518-8623 (Approx. 4 pages)
Report by 14 Firms on Immediate Effect of JOBS Act on Private Placements Released
by PLC Corporate & Securities
| Published on 09 Apr 2012 • USA (National/Federal) |
14 law firms have released a report detailing their consensus on the immediate effect of the Jumpstart Our Business Startups Act of 2012 on SEC rules governing general solicitation and advertising in certain private placements.
On April 5, 2012, 14 law firms issued a consensus report containing a helpful Q&A on the immediate effect of Title II of the Jumpstart Our Business Startups Act of 2012. Title II requires the SEC to amend its rules to allow general solicitation and advertising in securities transactions exempt from registration under Rule 506 of Regulation D and Rule 144A under the Securities Act, provided certain conditions are met. The consensus report highlights that:
- The current versions of Rules 506 and 144A remain in effect until the SEC amends them. Title II requires the SEC to do so not later than 90 days after the date of enactment of the JOBS Act.
- The 14 firms expect market participants will continue to implement customary procedures in offerings relying on these rules until the rules are actually amended.
For more information on Title II of the JOBS Act, see Practice Note, JOBS Act: Regulation D and Rule 144A General Solicitation Summary.