Thursday, April 05, 2012

President Vows Rigorous Oversight in Signing JOBS Act

In a statement accompanying the signing of the Jumpstart Our Business Startups (JOBS) Act, President Obama said that, for business owners who want to take their companies to the next level, the measure will make it easier for them to go public. And that is a big deal, he said, because going public is a major step towards expanding and hiring more workers. It is also a big deal for investors as well, because public companies operate with greater oversight and greater transparency.

And for start-ups and small businesses, the Act is a potential game changer. Right now, you can only turn to a limited group of investors, including banks and wealthy individuals, to get funding. Laws that are nearly eight decades old make it impossible for others to invest. But the President emphasized that a lot has changed in 80 years, and it is time the securities laws did as well. Because of this Act, start-ups and small businesses will now have access to a big, new pool of potential investors. For the first time, ordinary citizens will be able to go online and invest in entrepreneurs that they believe in.

In order to ensure that investors do not get taken advantage of, the President vowed that the websites where investors will go to fund all these start-ups and small businesses will be subject to rigorous oversight. He noted that the SEC is going to play an important role in implementing the legislation. Moreover, the President directed his administration to keep a close eye as this law goes into effect and to provide him with regular updates. Finally, the President urged Congress to ensure that the SEC is properly funded so that they can do the job and make sure that investors get adequate protections.