The Jumpstart Our Business Startups Act (the "JOBS Act") could have a positive impact on small business capital formation, for broker-dealers who can now offer new services to clients, and for investment advisers and private investment funds. But, as always, the devil is in the details.
In this article, the authors address key aspects of the JOBS Act, including changes to the regulation of private offerings that use general solicitation under Rule 506 of Regulation D; the exemption from registration with the Securities and Exchange Commission as a broker-dealer for platforms that facilitate such offerings; crowdfund investing; the JOBS Act's implications for private investment funds and investment advisers; and the potential impact of the JOBS Act on private investments in public equity transactions.