The North American Securities Administrators Association, the association of state regulators, is advocating for the renewed power for states to review and regulate Regulation D private placements.  In 1996, Congress passed the National Securities Markets Improvement Act, which precluded states from regulating private placements.  NASAA wants Congress to rescind Section 18(b)4(D) of the Securities Act of 1933 to allow state regulators the “ability to scrutinize offerings for signs of potential abuse and to ensure that disclosure is adequate before harm is done to investors.”

OUR TAKE: We remember the days when a fund sponsor would have to reconcile PPM comments from multiple state regulators.  Adding blue sky compliance requirements to private offerings would be unnecessarily burdensome and expensive. 

http://www.nasaa.org/content/Files/2011_Legislative_Agenda.pdf