NASAA Comments On SEC’s Regulation A+ Proposal

Not unexpectedly, on February 19, 2014, the North American Securities Administrators Association sent a letter to the SEC objecting to the preemption of state authority over small corporate offerings by the SEC in its Regulation A+ Proposal and requesting a meeting with Chair White and the Corporate Finance leadership. The Proposal preempts state securities law review for Tier 2 Regulation A offerings (those up to $50 million) by defining a "qualified purchaser" as any offeree or purchaser in a Tier 2 offering.  In the letter, NASAA stated:

We cannot do our job – protect investors or help small businesses access capital and grow their companies – where the Commission attempts to prohibit our review as contemplated in the Regulation A+ Proposal.