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Tag Archives: accredited investor

Prepaid College Tuition Programs Deemed Eligible for QIB and Accredited Investor Status

Posted in Accredited Investor Standard, Regulation D, Rule 144A, SEC News

On January 12, 2016, the Securities and Exchange Commission’s Division of Corporation Finance (the “Division”) granted no-action relief to the College Savings Plan Network (“CSPN”), an affiliate of the National Association of State Treasurers that represents eleven International Revenue Code §529-qualified prepaid tuition programs (the “§529 Programs”), in connection with its request for the §529… Continue Reading

Investor Advisory Committee

Posted in SEC News

On July 10, the Investment Advisory Committee will be meeting to consider various topics, including the definition of the term “accredited investor.”  The Committee had previously discussed amendments to the natural persons prong of the definition to better account for the financial sophistication of purchasers.  Meetings are webcast. Read the meeting notice here. Read the… Continue Reading

SEC Issues Investor Bulletins Relating to General Solicitation and Accredited Investors

Posted in Rule 506, SEC News

In September 2013, the SEC’s Office of Investor Education and Advocacy issued an alert for investors relating to the SEC’s new general solicitation rules.  In addition, a second bulletin provides details on the definition of “accredited investor.”  These documents are available on the SEC’s website at the following links: http://www.sec.gov/investor/alerts/ia_solicitation.pdf http://www.sec.gov/investor/alerts/ib_accreditedinvestors.pdf The general solicitation alert… Continue Reading

GAO Study on the Accredited Investor Standard

Posted in Accredited Investor Standard, JOBS Act News

The Dodd-Frank Act mandated that the GAO conduct a study regarding the “accredited investor” standard in order to understand whether the existing criteria serves the intended purpose or whether alternative criteria should be considered.  The report was recently released and can be accessed here:  http://gao.gov/products/GAO-13-640?source=ra.  In addition to reviewing data, the GAO conducted interviews with… Continue Reading

Final Report of SEC Forum on Small Capital Formation

Posted in Crowdfunding, Regulation A+, Rule 506, SEC News

The SEC recently posted on its website the Final Report from the 2012 SEC Government-Business Forum on Small Capital Formation, which was held in the fall of 2012.  The report may be accessed at http://www.sec.gov/info/smallbus/sbforum.shtml.  The report includes 35 recommendations from the Forum, with quite a number of these focused on crowdfunding.  Setting aside those… Continue Reading

Another Day, Another JOBS Act Hearing

Posted in Rule 506

Today, Commissioner Elise Walter testified before the House Subcommittee on Oversight and Investigations of the Committee on Financial Services regarding the SEC’s implementation of Title II of the JOBS Act.  Commissioner Walter noted that finalizing the rulemaking is one of the SEC’s “top priorities.”  The Commissioner reviewed the pre-rulemaking comments that were received, as well… Continue Reading

AngelList Receives No-Action Letter Guidance

Posted in Broker-Dealer Registration

The Division of Trading & Markets also issued no-action letter guidance to AngelList in which the Staff indicated that it would not recommend enforcement action for failure to register as a broker-dealer if AngelList and its affiliates were to establish an internet-based platform to facilitate angel investing by accredited investors.  An affiliate of AngelList that… Continue Reading

FundersClub Obtains Broker-Dealer Registration No-Action Relief

Posted in Broker-Dealer Registration, Crowdfunding, Private Placements, Rule 506, SEC News

On March 26, 2013, the SEC’s Division of Trading and Markets provided no-action relief to FundersClub Inc. and FundersClub Management LLC, indicating that the Division would not recommend enforcement action under Section 15(a)(1) of the Exchange Act if FundersClub and FundersClub Management LLC operated a platform through which its members could participate in Rule 506… Continue Reading

Trust, and Verify

Posted in Rule 506

In considering the relaxation of the prohibition against general solicitation and general advertising that was incorporated into the JOBS Act, Congressional attention seemed to focus on some quid pro quo arrangement that demands verification of accredited investor status.  This leads us to wonder why it takes a “trade” of this sort to justify removing the… Continue Reading