Many entrepreneurs have been growing increasingly impatient with the SEC. Not only is the SEC about to be 6 months late in implementing the loosening of the general solicitation requirement of Regulation D, which was mandated by the JOBS Act, but it is now nearly certain that the SEC will also miss its deadline to issue regulations to implement the crowdfunding provisions of the JOBS Act as well. Under the JOBS Act, the SEC was given until January 2013 to issue the implementing regulations and since the new year is right around the corner, and we haven’t even seen proposed regulations, we know it will be a long time until the regulations are finalized and companies can begin to use the new crowdfunding exemption. That said, on December 7, a small step was taken towards implementing the crowdfunding law. [Read more…]
As part of the Dodd-Frank Act, Congress directed the SEC to review whether a so-called “self-regulatory organization” (or “SRO”) should be created to regulate investment advisers. Doing so would make investment adviser regulation more akin to the way broker-dealers are regulated.
Under securities laws, broker-dealers must register with the SEC by filing Form BD. But Form BD is a relatively minor step in the process of registering a broker-dealer, because broker-dealers are also required to become a member of the Financial Industry Regulatory Authority (“FINRA”). The membership application for FINRA is the most time-consuming step in creating a new broker-dealer. After a broker-dealer is registered, FINRA also takes the primary role in regulating the activities of the broker-dealer.