JOBS Act to Relax Rules on Securities Offerings

March 27, 2012

The Jumpstart Our Business Startups Act was approved by the U.S. Senate on March 22, 2012. It is expected that the U.S. House of Representatives will approve the Senate-approved version of the Act and that President Obama will sign the Act into law within the next few days. The Act is intended to facilitate capital formation in a variety of ways – including by making the IPO process less burdensome for “emerging growth companies,” a new class of issuer including currently private companies with annual revenues of less than $1 billion. Some of the Act’s provisions will become effective immediately upon enactment, while others will require rulemaking, in some cases under tight deadlines, by the Securities and Exchange Commission. The attached memorandum summarizes the provisions of the Act we believe have the greatest potential impact on the financial markets and market participants, assuming the Senate-approved version of the Act becomes law.