NASAA Approves Streamlined Multistate Coordinated Review Program in Response to Reg. A

The North American Securities Administrators Association ("NASAA") announced that its members have voted to approve a streamlined multistate review protocol to ease regulatory compliance costs on small companies attempting to raise capital under the JOBS Act.

The new program was initiated in response to JOBS Act Title IV ("Small Company Capital Formation"), which increased the amount of money that can be raised through offerings exempt from registration under Regulation A ("Conditional Small Issues Exemption") from $5 million to $50 million. The SEC proposed a rule implementing this JOBS Act provision which seeks to transforM& Reg. A offerings into covered securities, which, by law, are not subject to state review. NASAA stated that the proposed rule would eliminate state authority to review Reg. A offerings before they are sold to the public. In response, NASAA members approved a new program in which Reg. A filings would be made in one place and distributed electronically to all states. Lead examiners would be appointed as the primary point of contact for a filer, and each state would be given ten business days to review. The NASAA noted that lead examiners alone would interact with issuers to resolve any deficiencies.

See: Press Release.Related news: NASAA Submits Letter to SEC Objecting to State Preemption of Reg. A+ Offerings (with Lofchie Comment) (February 20, 2014); SEC Issues Proposed Rule Amendments for Exemptions under Securities Act Section 3(b) (Fed. Reg.) (January 23, 2014); SEC Proposes Rules and Forms Amending Regulation A (with Delta Strategy Group Summary) (December 19, 2013); SEC Proposes Amendments to Reg. A to Increase Access to Capital for Smaller Companies (December 18, 2013).