In a hearing before the House Oversight TARP and Financial Services Subcommittee, SEC Chairman Mary Schapiro confirmed it will miss the deadline for publishing rules to lift the ban on general solicitation and advertising for certain private placement offerings. Schapiro stated:
“It’s a bit more challenging a rulemaking than it might seem on the surface,… Taking steps to verify [investor status] means there are probably lots of alternatives for doing that. Under our cost-benefit analysis guidance, we have to actually look at different alternatives and weigh the costs and benefits of different alternatives for verification of accredited investor status.”
Schapiro then added that that the SEC staff are “significantly along” in the process or rule writing and will release a timeline of the consideration of the rule in the next two days.
If you are interested in hearing the Chairman’s comments, a video of the hearing (about 1.5 hours long) is available here. The Chairman’s comments about missing the deadline happen at around minute 25 in the video.