Gun jumpingBy http://profile.typepad.com/1237764140s22740 // November 26, 2012 in General Solicitation, Lawyers
Last week, a New York lawyer and I were comparing notes over the phone about the proliferation of online financing platforms, ones catering, or purporting to cater, to private companies seeking funds from accredited investors.
The conversation began with a question. "Does it appear to you that many of these sites are doing things that are not yet legal?"
Though lawyers will trade URLs of the suspect sites freely amongst themselves, they - we - are all circumspect about publicly tagging domains to doubts.
Though I'm on record for asking questions - not indicting or accusing but asking questions - about what FundersClub is doing.
A comment onf the FundersClub post, asking if I had considered Joe Wallin's post about rules on general solicitation, brought home how easy it is to forget that often Congress writes laws that don't so much make law as in effect tell agencies to write rules to make law. Here's an excerpt of how I replied:
What @joewallin is talking about in the blog post you link to is an SEC release with *proposed* rules to implement the lifting of the ban on general solicitation. The key qualifier here is "proposed." The rules are not final. Unfortunately, unlike other provisions of the JOBS Act, the lifting of the ban on general solicitation did not become effective once the President signed the JOBS Act. Instead, the law said that the SEC must first write rules to implement the change, and the change won't go into effect until the SEC promulgates final rules (unless, of course, Congress passes the legislation again, this time not requiring rulemaking, but I don't know anyone who thinks this is likely).
Gif: Gee Willi / Flickr.