SEC delays consideration of JOBS Act rule

(Reuters) – The Securities and Exchange Commission has delayed for a week its consideration of new rules to lift the ban on general advertising for private securities offerings, the regulator said on Tuesday.

The controversial solicitation rules would scale back a decades-old ban on broad advertising to investors for certain private offerings. Supporters say the change would spur economic growth, but critics have said it could lead to fraud.

The SEC was originally scheduled to consider the rules during a meeting on Wednesday. Commissioners instead will take up the rules during an August 29 meeting, according to the SEC’s website.

The SEC has already missed a 90-day deadline to implement the rules as required by the Jumpstart Our Business Startups Act, or JOBS Act, which was signed into law in April. The law reduces a variety of securities regulations to help smaller companies more easily raise capital.

SEC spokesman John Nester declined to comment on the reason for the delay on the new solicitation rules.

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