In reaction to today's U.S. Senate passage of the JOBS Act, Kurt Schacht, CFA, managing director of standards and financial market integrity at CFA Institute, said:
"Today's Senate vote to pass the JOBS Act is a grim moment for the integrity of U.S. markets, investors, and those who work diligently to uphold regulations to protect investors. Among other shortfalls, the JOBS Act requires no visible warnings for investors on SEC filings and financial updates, and does not subject newly public companies to normal financial reporting rules. It will be incumbent upon investors to dig deeper, ask more questions, and be more skeptical when considering investing."
According to a recent CFA Institute member survey, less than a third of CFA Institute members in the United States are enthusiastic about the JOBS Act as passed by the House (read more). Just 29 percent of members thought the Senate should pass the bill as is, and 63 percent believe that the proposed bill will create additional gaps in investor protection and transparency. In addition, 59 percent of members think the bill that passed the House will decrease an investor's ability to make informed investment decisions.
About CFA Institute
CFA Institute is the global association for investment professionals. It administers the CFA and CIPM curriculum and exam programs worldwide; publishes research; conducts professional development programs; and sets voluntary, ethics-based professional and performance-reporting standards for the investment industry. CFA Institute has more than 108,000 members, who include the world's 100,000 CFA charterholders, in 138 countries and territories, as well as 135 affiliated professional societies in 58 countries and territories. More information may be found at www.cfainstitute.org.
Contacts:
CFA Institute, New York
J.D. McCartney, 212-418-6889
jd.mccartney@cfainstitute.org