News / Economy

US SEC Chair Pushes for More Private Stock Disclosures

Securities and Exchange Commission Chair Mary Jo White at meeting of the Financial Stability Oversight Council, Washington, April 25, 2013.
Securities and Exchange Commission Chair Mary Jo White at meeting of the Financial Stability Oversight Council, Washington, April 25, 2013.
TEXT SIZE - +
Reuters
The head of the U.S. Securities and Exchange Commission vowed to plow ahead with controversial new rules requiring hedge funds to disclose details about private stock deals before advertising them, a move that is likely to irk the industry.
 
"For investors' sake and the sake of the new marketplace, we need to move expeditiously toward adoption," SEC Chair Mary Jo White told the Managed Funds Association in a speech in New York on Friday.
 
The plan aims to help the SEC get more information about the private securities market by requiring numerous additional disclosures.
 
It was proposed in July in an effort to appease critics who had urged the SEC to delay adopting a related rule that lifted an 80-year-old ban on general advertising for private stock deals by hedge funds and other firms.
 
The lifting of the advertising ban was required by the 2012 Jumpstart Our Business Startups (JOBS) law that eases securities regulations to help small businesses raise capital and go public.
 
Investor groups had urged the SEC to include more customer protections before lifting the ban.
 
Instead, White opted to press ahead with adoption of the advertising rules and separately propose a set of additional disclosures for private securities offerings in an effort to help the SEC better protect investors.
 
The new advertising rule went into effect in late September.
 
The proposal championed by investor advocates has generated more than 450 comment letters so far, White told the audience on Friday.
 
"This is an important proposal, and there are a lot of different views about it, so it is important to have an opportunity to consider these views," she said.
 
Many of the comments have been negative, with critics including New Jersey Republican Congressman Scott Garrett saying the additional disclosures will "increase regulatory burdens on small businesses" and essentially undermine the whole purpose of the JOBS Act.
 
In another sign that White is not willing to ease restrictions for private funds, she also said she would not give in to pressure by some to allow private funds to avoid inspections by SEC examiners.
 
Last month, Garrett and House Financial Services Committee Chair Jeb Hensarling wrote a letter to White urging the SEC to stop spending so much time conducting compliance exams of hedge fund and private equity fund advisers.
 
The lawmakers argued that investors in these funds are more sophisticated, and that the SEC's time would be better spent examining advisers who offer mom and pop investors advice.
 
Without naming the lawmakers in her speech, White rejected that argument on Friday.
 
"The SEC has a mission of investor protection that runs across the investor landscape. It applies to all investors, and all investors in the U.S. markets deserve to know that there is a regulator on the block," she said.

You May Like

Abuja Blast Impacts Lives, Livelihoods

Officials say they are looking at ways to help bombing victims and boosting security More

Cambodia Technology Adviser Criticizes Cybercrime Draft Law

Phu Leewood says current criminal code can be used to prosecute offenders and that there is no need for a separate law More

Photogallery A Year Later, Boston Remembers Deadly Marathon Bombings

City pauses to honor victims and salute emergency workers who came to their assistance in frantic moments after blasts More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid

World Currencies

EUR
USD
0.7287
JPY
USD
103.22
GBP
USD
0.6027
CAD
USD
1.0991
INR
USD
60.191

Rates may not be current.