Does The SEC’s Regulation A Proposal Defy Congress’ Clear Intent?

This week’s announcement by the Securities and Exchange Commission that it is proposing amendments to update and expand Regulation A has attracted quite a bit of attention.  David Lynn writing in Broc’s Blog took special note of the proposed preemption of state blue sky laws.  As expected, additional preemption did not sit well with the

NASAA Slams The JOBS Act, But Have The States Really Been Handcuffed?

NASAA isn’t in the business of firing off rockets but it did launch a missile yesterday targeted directly at the JOBS Act.  In this press release, NASAA’s president, Jack E. Herstein, is quoted as saying: The JOBS bill the President signed today is based on faulty premises and will seriously hurt all investors by either eliminating or reducing transparency

Kudos For California’s Commissioner Of Corporations

The North American Securities Administrators Association (NASAA) describes itself as “the oldest international investor protection organization”.  It is comprised of 67 state, provincial, and territorial securities administrators in the 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico, Canada, and Mexico. At lunch yesterday, I remarked to Broc Romanek that it has been

Does California’s Anti-Waiver Statute Void Choice Of Forum Agreements?

California Corporations Code Section 25701 is derived from Section 410(g) of the Uniform Securities Act (1956).  Section 25701 voids any condition, stipulation or provision purporting to bind any person acquiring any security to waive compliance with any provision of the Corporate Securities Law or any rule thereunder.  Does this statute prevent investors from agreeing that disputes will be decided by

Commissioner Invites Comments On Adopting New Custody Rule

Investment advisers frequently have custody, either directly or indirectly, of their clients’ assets.  Obviously, custody of another’s assets can lead to infidelity.  In the word’s of the satirist Juvenal, the question necessarily becomes “sed quis custodiet ipsos custodes? (but who shall guard the guards?). In the case of registered investment advisers, securities regulators are the