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The Jobs Act: The View From Joe Bartlett's Office On Park Avenue

William Carleton, Contributing Editor, VCExperts



Stopped by Joe Bartlett's office on Park Avenue last week.

We chatted about where things seem to stand, now a week+ past September 23.

Joe is wondering just how the Reg D filings are breaking, between 506(b) and 506(c). Pretty soon, we will be able to survey Form D filings and tell. (Little observed fact: while of course the proposed rules overhauling Reg D are not in effect, the final 506(c) rule includes a tweak to Form D to differentiate between 506 deals making use of general solicitation, and those sticking with the old prohibition.)

I think we both continue to feel that the viability – no, call it the utility – of 506(c) will depend in no small measure on how effectively the ecosystem develops alternative "techniques" (I am borrowing that term from a colleague of Joe's) for applying the principles-based method of accredited investor verification, as distinct from the four non-mandatory, non-exclusive methods spelled out in the rule.

The other way it might go, of course, is that third parties could just get so efficient at automating and routinizing the income and net worth methods, alternatives won't be as important.

So the jury is still out.

Meantime, also taking place in Joe's building, Major League Baseball continues to conduct some kind of proceeding in connection with Alex Rodriguez's eligibility to play baseball. Pictured is a crowd of protesters, pro-Rodriguez.


William Carleton

Bill is a member of McNaul Ebel Nawrot & Helgren PLLC, a Seattle law firm. He blogs every day at http://wac6.com.