Tuesday, December 4, 2012
There has been quite a lot of heat in the last few days about whether SEC Chairman Schapiro delayed implementation of Section 201 of the JOBS Act, which requires the SEC to remove the ban on general solicitation for certain issuers, in order to preserve her pro-investor legacy. (see WSJ, WSJ UPDATE: SEC Chief Schapiro Delayed Rule Over Legacy Concerns). The SEC has posted on its website the letter from Rep. Patrick McHenry, Chairman of the Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs, which occasioned the firestorm.
Rep. McHenry objects to the Commission's August 29, 2012 adoption of a proposal to implement Section 201 instead of an interim final rule because "the delay in implementation of Section 201 is a significant obstacle to capital formation and economic recovery." The letter sets forth various emails that, Rep. McHenry charges, "imply that [Schapiro] personally intervened to delay implementation of the law in an effort to appease special interest groups and out of concern for your legacy as Chairman." Rep. McHenry charges that "one late communication from a well-placed lobbyist effectively stalled the implementation of Section 201" -- i.e., Barbara Roper, of the Consumer Federation of America, who in an email communicated "strong objections" to the draft interim final rule.