Yesterday the Crowdfund Intermediary Regulatory Advocates (CfIRA), an industry group representing crowdfunding intermediaries, submitted a letter to the House Subcommittee on Oversight and Investigations urging those frustrated with inaction to apply pressure to those who have the power to enact change.
This letter precedes tomorrow’s hearing in front of the same subcommittee.
Last week a separate hearing took place that saw SEC Director of Corporate Finance Lona Nallengara get publicly lambasted by members of the House. The letter seems to be in response to those events. This may be an effort to encourage a more constructive tone for tomorrow’s hearing.
You can read the full letter below. Check back tomorrow for news on the upcoming hearing.
Crowdfund Intermediary Regulatory Advocates
300 West 49th Street, Unit 200
New York, NY 10011
April 16, 2013
House Committee on Financial Services
Subcommittee on Oversight and Investigations
2129 Rayburn House Office Building
Washington, DC 20515
RE: Hearing entitled “Examining the SEC’s Failure to Implement the JOBS Act and its Impact on Economic Growth”
We represent the Crowdfund Intermediary Regulatory Advocates (CFIRA), a coalition of industry professionals representing funding portals intermediaries, entrepreneur issuers, investors and third party service providers for the anticipated securities based crowdfunding (“crowdfund investing”) industry. Created in April, 2012, as a result of the Jumpstart Our Business Startups (JOBS) Act, our organization has met with leadership among the Securities and Exchange Commission staff and leadership among FINRA on a number of occasions. Resulting from these meetings, we have also submitted approximately fifteen comment letters outlining the industry’s response to anticipated changes in Title II and Title III of the Securities and Exchange Act, in addition to providing the first industry Broker Dealer and Funding Portal Best Practices and Standards document.
Like many members of this Subcommittee, our organization was prepared for implementation of Title II of the JOBS Act on July 5, 2012 and for implementation of Title III of the JOBS Act on January 1, 2013. And like many of you, we are concerned with the lack of guidance from the SEC surrounding both Titles. We encourage your support in questioning the leadership, and specifically the Commissioners, regarding their prioritization of the JOBS Act regulatory process.
However, it is important to understand the hard work and dedication that has been shown by the staff in creating draft rules for the Commission. The staff has been proactive in meeting with all members of the industry each time we have requested their presence, and has been extremely proactive in reaching out to us to discuss many aspects of the regulations surrounding the JOBS Act. In fact, we believe that the staff has had draft rules before the Commissioners since November 2012.
As you seek information from the SEC during your hearing on April 17, 2013, we encourage you to place your frustration and concern with the party most able to respond, and that party is the Commission, rather than the staff. Like you, we all look forward to the Chairman and Commission calling the rules for Title III forward for public comment and finalizing the rules for Title II.
Sincerely,
Candace Klein, Co-chair
Vincent Molinari, Co-chair
DJ Paul, Board Member
Freeman White, Board Member
Kim Wales, Board Member
Chris Tyrell, Board Member
Chris Camillo, Board Member
Scott Purcell, Board Member
Mike Dinan, Board Member
Joy Schoffler, Board Member
Ryan Feit, Board Member
Michael Norman, Board Member
Doug Ellenoff, Board Observer
Peter T. King, New York
Michele Bachmann, Minnesota
Sean P. Duffy, Wisconsin
Michael G. Grimm, New York
Stephen Lee Fincher, Tennessee
Randy Hultgren, Illinois
Dennis A. Ross, Florida
Ann Wagner, Missouri
Garland “Andy” Barr, Kentucky
Jeb Hensarling, Texas, ex officio
Spencer Bachus, Alabama, Emeritus