SEC to extend comment period on private placements

The Securities and Exchange Commission will hear comments on the controversial issue through the end of October

There is no doubt that the federal government wishes to encourage job growth in the United States. There is also little doubt that it has attempted to learn lessons from various pyramid schemes, such as those perpetrated by Bernie Madoff. But those two initiatives appear to be at odds as the Securities and Exchange Commission (SEC) considers proposals related to the Jumpstart Our Business Startups Act in relation to private placements.

The JOBS Act was passed in 2012 with the backing of Republicans and Democrats alike. It is intended to encourage investment in U.S. small businesses by loosening security regulations. As part of the act, the SEC would lift an advertising ban for hedge funds looking to raise cash through private placements.

Senior Editor and Community Manager

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Rich Steeves

Richard P. Steeves is Senior Editor and Community Manager of InsideCounsel magazine, where he covers the intellectual property and compliance beats. Rich earned a B.A....

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