MFA Submits Letter to SEC on Implementation of the JOBS Act

On June 26, MFA submitted a comment letter to the SEC regarding its implementation of Section 201 of the Jumpstart Our Business Startups Act (the “JOBS Act”). In the letter, MFA recommended that the SEC indicate that reasonable steps to verify that a purchaser is an accredited investor should include a certification from the investor along with either a minimum investment or some type of additional evidence regarding the investor’s income or assets. The SEC should provide a non-exclusive list of the types of additional evidence that an investor could provide. This approach would best fulfill the verification requirement while achieving Congress’s primary objectives to enhance capital formation and facilitate the flow of information in a manner consistent with investor protection.