WASHINGTON (December 18, 2013) – The following is a statement from Andrea Seidt, President of the North American Securities Administrators Association (NASAA) and Ohio Securities Commissioner, on the Securities and Exchange Commission’s proposed rule related to the offer and sale of securities pursuant to Section 3(b) of the Securities Act of 1933, as mandated by Title IV of the Jumpstart Our Business Startups Act.

“In recent meetings with the SEC, we have urged commissioners not to preempt the states in the agency’s rulemaking under Title IV of the JOBS Act and to be mindful that Congress, when considering the Regulation A+ provisions of the JOBS Act, concluded that states should not be preempted from review of offerings under the exemption, citing both the “high-risk” nature of these offerings and the “essential” function that state review plays in discouraging fraud.

“The Commission’s proposed rule ignores Congress’ recent judgment and defies Congress’ clear intent. As a policy matter, it is not clear why the Commission would remove state oversight in a high-risk area where both federal and state resources should be fully leveraged to provide sufficient, regular review.

“State securities regulators want offerings under the new Regulation A+ to be an attractive alternative for small business filers, but are weary of expending state resources to combat frauds that they are preempted from preventing on the front end through the state review and registration process. It is not reasonable for the Commission to expect the states to continue to clean up all of the mess left behind in the wake of preemptive measures like this.

“NASAA will provide its official comments regarding today’s rule proposal to the Commission in short order and will continue to work diligently on developing its new streamlined state review and filing programs for all multi-state offerings filed with NASAA members. We are hopeful that our progress with the new system will demonstrate to the Commission and other interested parties that states can serve a vital role toward making Regulation A+ a success for small business filers without sacrificing important protections for investors.”

NASAA is the oldest international organization devoted to investor protection. NASAA’s membership consists of the securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, the provinces and territories of Canada, and Mexico.

— NASAA —

For More Information:
Bob Webster | Director of Communications
202-737-0900





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