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The JOBS Act—Implications for Raising Capital and for Financial Intermediaries  


Author:  Richard B.  Levin.; Jonathan  Nowakowsk.; Aaron A.  O’Brien.


Source: Volume 26, Number 05, May/June 2013 , pp.21-29(9)




Journal of Taxation and Regulation of Financial Institutions

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Abstract: 

The Jumpstart Our Business Startups Act (the “JOBS Act”) could have a positive impact on small business capital formation, for broker-dealers who can now offer new services to clients, and for investment advisers and private investment funds. But, as always, the devil is in the details. In this article, the authors address key aspects of the JOBS Act, including changes to the regulation of private offerings that use general solicitation under Rule 506 of Regulation D; the exemption from registration with the Securities and Exchange Commission as a broker-dealer for platforms that facilitate such offerings; crowdfund investing; the JOBS Act’s implications for private investment funds and investment advisers; and the potential impact of the JOBS Act on private investments in public equity transactions.

Keywords: Jumpstart Our Business Startups Act; private offerings; Regulation D Rule 506; general solicitation; SEC Release No. 33-9354; accredited investors; crowdfund investing; funding portal; PIPE transactions

Affiliations:  1: Baker Hostetler; 2: Baker Hostetler; 3: Baker Hostetler.

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