In recent days, industry and investor advocates have been fighting over the general solicitation and advertising exemptions in private placements that went into effect with the JOBS Act.
Further, these advocates are also discussing the definition of the accredited investor standard. Investor groups are looking to tighten these standards while industry advocates are seeking flexibility. This dispute has led to the Securities Industry and Financial Markets Association weighing in on the matter, and informing the SEC that it should not impose a higher burden other than the current requirements of Rule 506 and the reasonable belief standard. Other groups have also asked the SEC to develop a flexible and principles-based standard when it comes to an interpretation.
Additionally, other disputes have arisen over the question of the JOBS Act’s impact on foreign issuers operating in the United States. Some are suggesting that those companies may or may not be subject to US jurisdiction. There is no particularized fault line going one way or another at this time as to how that would work.
In short, the JOBS Act continues to be a quagmire with no easy solutions or answers.