Finance expert Mike Periu on expected delays for the implementation of the Jobs Act, a new, easier way for companies to raise money.
The JOBS Act which authorizes new, broader and simpler ways for companies to raise money via Crowdfunding will go into effect in 2013.
In order for this to happen, the Securities and Exchange Commission, tasked with overseeing the implementation and enforcement of the JOBS Act, must decide on a plan of action by December 31st. It is far from certain that they’ll be able to meet this deadline.
The SEC still must: draft and publish the specific rules that will allow entrepreneurs to communicate with potential investors; design protection mechanisms against fraud; prepare educational materials for investors; build systems to monitor the money flow; and more. Even if the SEC meets its deadline, the Financial Industry Regulatory Authority (FINRA) must then draft the rules on how the transactions will work. There is no deadline for FINRA and they don’t plan to even start the process until the SEC finishes their part. Then once FINRA is done, the SEC must sign off on their work. Expect a year or more of delays.
Learn more at The Washington Post.
A little about Mike Periu
Periu founded Proximo, LLC nearly 15 years ago. The company provides small business education and training services with an emphasis on finance and technology.
Periu teaches empowerment through entrepreneurship and economic opportunity. He regularly appears on television and radio talking about these subjects.
Periu also writes for leading blogs about finance. These include: American Express OpenForum, Yahoo! Finanzas and the Huffington Post.
Periu studied Finance and International Business at Georgetown University. He is a Board member at the Council for Economic Education.