IPA Urges House Committee to Support the Private Placement Improvement Act
The Investment Program Association, a trade organization representing the direct investment industry, sent a letter of support to the House Committee on Financial Service for the Private Placement Improvement Act, H.R. 4852, which directs the Securities and Exchange Commission to revise Regulation D relating to exemptions from registration requirements for certain sales of securities.
The IPA noted that a number of its members utilize private equity offerings, and that H.R. 4852 will help bring certainty to the private placement space and increase the use of general solicitation to raise capital.
“The IPA supported passage of the JOBS Act in 2012 because we believed that the provisions in that legislation would help unlock new capital that would foster economic growth. Unfortunately, in writing the regulations to implement the JOBS Act, the Securities and Exchange Commission proposed regulations for general solicitation that would create tremendous new burdens for private offerings and essentially freeze that market. While these proposed regulations have never been finalized, they have also never been withdrawn,” said IPA president Tony Chereso in a letter to Jeb Hensarling, chairman of the House Committee of Financial Service.
He added, “This has created tremendous uncertainty in the private placement marketplace and has depressed the use of the general solicitation opportunity created by the JOBS Act. H.R. 4852 will help bring certainty to the private placement space and increase the use of general solicitation to raise capital that will spur economic growth.”
The Investment Program Association supports individual investor access to a variety of asset classes not correlated to the traded markets and historically available only to institutional investors. These include non-traded REITs, business development companies, energy and equipment leasing programs, and private equity offerings.
