Monday, March 19, 2012

NASAA Considers Policy Statement on Business Development Companies

The Corporation Finance Section Committee of the North American Securities Administrators Association (NASAA) has informally solicited comments concerning the adoption of a new Statement of Policy Regarding Business Development Companies. Although specific proposals have not yet been developed, the Committee is requesting advance comments and suggestions from fellow regulators and members of the public. In particular, the Committee is seeking comments concerning whether NASAA should develop a Statement of Policy specifically tailored to offerings involving business development companies, or whether the existing Statements of Policy provide an adequate framework for these offerings.

Additionally, the Committee has requested comments regarding whether NASAA should revise the existing Statement of Policy Regarding Real Estate Investment Trusts. If so, the Committee has asked whether the Statement of Policy should adopt a standardized minimum offering requirement, and what standards should be used in assessing a minimum offering amount. The Committee has also asked for comments on the need to revise the following provisions:

- Suitability and concentration standards

- Provisions relating to Net Asset Value

- Provisions relating to non-GAAP financial measures

- Gross offering proceeds as a source to fund distributions

- Other provisions

Comments should be submitted via email to NASAA Deputy General Counsel Rick A. Fleming at on or before Monday, May 21, 2012. Comments will be forwarded to all members of the NASAA Corporation Finance Section Committee and Direct Participation Plan Project Group for consideration. If the Committee determines to move forward with specific proposals, they will be subject to additional internal and public comment in accordance with NASAA Policies and Procedures.