| WASHINGTON, June 27
WASHINGTON, June 27 U.S. securities regulators
will not be able to meet a tight deadline to complete new rules
such as one that would lift a ban on general advertising for
private securities offerings, a top official will tell lawmakers
In prepared testimony, Securities and Exchange Commission
Chairman Mary Schapiro will tell a U.S. House oversight panel
that certain rulewriting deadlines imposed by the JOBS Act "are
"The 90-day deadline does not provide a realistic timeframe
for the drafting of the new rule, the preparation of an
accompanying economic analysis, the proper review by the
commission, and an opportunity for public input," she said.
The JOBS Act was enacted in April with wide bipartisan
support and aims to reduce regulatory burdens for smaller
companies to help them raise capital and eventually go public.
The law changes numerous U.S. securities laws, giving
companies greater ability to solicit investors for private
offerings and permitting a new capital-raising strategy known as
"crowdfunding" where investors can take small stakes in
companies over the Internet, among other reforms.
Some of the law went into effect immediately after it was
signed by President Barack Obama, but other parts require SEC
The JOBS Act comes at a busy time for the SEC, which is
still far behind on completing much of the required new rules
under the 2010 Dodd-Frank Wall Street reform law as well as
market structure reforms following the May 6, 2010 "flash
Prior to the law's passage, Schapiro had been critical of
portions of the JOBS Act, saying it could erode too many
critical investor protections.
Since it passed, however, she has pledged to work as
speedily as possible to implement its provisions.
Despite the tough timeline for the general solicitation
rule, Schapiro said that staff has "made significant progress"
on a recommendation and economic analysis.
"It is my belief that the commission will be in a position
to act on a staff proposal in the very near future," she said.