NEW YORK (Dow Jones)--A proposal that would change how certain private placements are regulated could mean another hurdle for small businesses in a cash-strapped, recessionary environment.
Sen. Christopher Dodd's draft legislation for sweeping financial reform includes a provision that would give back to state regulators the authority to oversee certain aspects of private placements, known as Reg-D offerings. States lost certain powers, such as the ability to review offerings and to prohibit bad actors from initiating Reg-D offerings, when Congress enacted the National Securities Markets Improvement Act of 1996, or NSMIA. That watershed law aimed to create uniform federal regulation of certain "covered securities" previously regulated at both the state and federal levels.
Original Article: GETTING PERSONAL: Reg-D Proposal Costly For Small Companies - WSJ.com
Author: Suzanne Barlyn
