Atkins directs SEC staff to redraw gun-jumping rules in IPO overhaul
SEC Chairman Paul Atkins used remarks to the Small Business Capital Formation Advisory Committee to set out where his IPO Modernization initiative is heading next: a staff review of the Securities Act gun-jumping prohibitions, the first comprehensive look at the Commission's communication rules since 2005. He also flagged pending work on accredited-investor qualification and Regulation Crowdfunding reform.
- Atkins has directed SEC staff to explore re-evaluating content and audience limits on offering communications and brighter lines on when a communication is an 'offer'.
- Staff are also to consider cure provisions to reduce 'foot fault' gun-jumping violations by issuers.
- The Commission has not completed a comprehensive review of its communication rules since 2005.
- Last month the Commission issued notices of potential additional accredited-investor designations, including qualification by passing a FINRA-developed exam.
- More than 9,800 Regulation Crowdfunding offerings have raised an average of $364,000 over the last decade, and Atkins has asked staff to evaluate amendments to the rules.