In the view of the bar group, a prescriptive standard may not only be unduly burdensome but may also be inappropriate to the circumstances. The Committee believe that the approach taken by the Commission will help assure that the verification process reflects the facts and circumstances of the particular issuer, the particular investment, and the particular offering, which will encourage compliance and aid the enforceability of the rule. The group commended the Commission for taking this flexible approach, and also appreciate the guidance in this regard set forth in the Release. The Committee recommended that the Commission consolidate this guidance in the adopting release. Similarly, the Committee encouraged the Division of Corporation Finance to continue its practice of publishing useful, pragmatic guidance under the JOBS Act, in this case Title II and the Commission’s implementing rules and interpretations thereunder
The Committee also supports the SEC’s determination not to provide a non-exclusive list of the specified methods for satisfying the verification requirement. As the Commission correctly notes, said the group, a non-exclusive list of specified verification methods could be viewed by market participants as the required verification methods, thus undermining the flexibility the Commission views as appropriate in connection with the verification process.