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Tag Archives: Crowdfunding

SEC Approves FINRA’s Funding Portal Rules

Posted in Crowdfunding, FINRA

The SEC approved FINRA’s Funding Portal rules for entities that intend to function as funding portals in crowdfunded offerings made pursuant to Regulation Crowdfunding.   We had previously posted a link to the rule text.  Today, FINRA issued Regulatory Notice 16-06, which provides an overview of the new Funding Portal Rules.  The Regulatory Notice can be… Continue Reading

Investor Advisory Committee Meeting

Posted in SEC News

The SEC announced that the next meeting of the Investor Advisory Committee will be held on January 21, 2016.  Among other things, the Committee will discuss the Financial Accounting Standards Board proposed amendments to the Statement of Financial Accounting Concepts and Notes to Financial Statements concerning disclosure materiality; an update on crowdfunding rules; and the… Continue Reading

Remarks of Sebastian Gomez Abero, Chief of the SEC’s Office of Small Business Policy, in an ALI Webcast Titled “Crowdfunding and Reg A+: New Routes for Raising Capital”

Posted in Crowdfunding, Events, Regulation A+

On May 22, 2014, Sebastian Gomez Abero, Chief of the Office of Small Business Policy of the Division of Corporation Finance of the SEC, spoke about the SEC’s crowdfunding and Regulation A+ proposals. Mr. Gomez commented generally on a number of comments and questions raised by commenters to the proposals. Mr. Gomez also noted that… Continue Reading

Recommendations of the SEC’s Investment Advisory Committee Regarding Crowdfunding Rules

Posted in Crowdfunding, SEC News

On April 10, 2014, the Investor Advisory Committee (the “IAC”) of the Securities and Exchange Commission (the “SEC”) held a meeting during which it recommended that the SEC adopt crowdfunding rules that are both consistent with the Dodd-Frank Act and commensurate with the risks inherent in allowing early stage start-up companies to sell securities based… Continue Reading

SEC Issues New and Revised Guidance on Intrastate Crowdfunding

Posted in Crowdfunding

On April 10, 2014, the Division of Corporation Finance of the Securities and Exchange Commission (the “SEC”) issued one revised and two new compliance and disclosure interpretations (“C&DIs”) regarding crowdfunding and Rule 147 under the Securities Act of 1933, as amended (the “Securities Act”), which are summarized below.  Section 3(a)(11) of the Securities Act (“Section… Continue Reading

Fed Governor Addresses Crowdfunding

Posted in Crowdfunding

Governor Jeremy C. Stein spoke at the Crowdfunding for Community Development Finance Conference today (see remarks at: http://www.federalreserve.gov/newsevents/speech/stein20140324a.htm).  Fed Governor Stein’s remarks emphasized that perhaps all too often crowdfunding is associated only or primarily with tech companies or start-ups, but that crowdfunding may be used for other purposes.  In particular, he focused attention on crowdfunding… Continue Reading

Investor Advisory Committee Meeting Scheduled

Posted in SEC News

The SEC announced the next meeting of the Investment Advisory Committee, which will be held on January 31st.  The agenda includes a discussion of, among other things, decimalization and crowdfunding.  The notice of the meeting is available here:  http://www.sec.gov/rules/other/2014/33-9510.pdf.

A Year End Look at the JOBS Act

Posted in Crowdfunding, IPO On-Ramp, JOBS Act News, Regulation A+, Rule 506

2013 has proven to be a strong year for IPOs.  According to a recent PWC study, total IPO volume for 2013, as of December 17, reached 237 public company debuts, which is an increase over 2012.  The overwhelming majority of these IPOs were completed by issuers that qualified as emerging growth companies.  (The full details… Continue Reading

Standing out from the Crowd: A Closer Look at the SEC’s and FINRA’s Proposed Crowdfunding Rules

Posted in Crowdfunding

In this alert, we provide a detailed overview of the proposed regulatory framework that will be applicable to crowdfunding offerings conducted pursuant to Title III of the JOBS Act in reliance on Section 4(a)(6) of the Securities Act. As we have noted in our prior initial observations related to the rules proposed by the Securities… Continue Reading

FINRA Regulatory Notice on Crowdfunding Portals

Posted in Crowdfunding

Today, FINRA released a regulatory notice with proposed funding portal rules and solicited comments on the seven rules—Funding Portal Rules 100, 110, 200, 300, 800, 900 and 12009—and related forms. The FINRA release is available here:  http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p370743.pdf The proposed regulations are available here:  http://www.finra.org/web/groups/industry/%40ip/%40reg/%40notice/documents/industry/p369763.pdf

Crowdfunding Proposal

Posted in Crowdfunding, SEC News

Here is a link to the proposed rule: http://www.sec.gov/rules/proposed/2013/33-9470.pdf. Press release with accompanying fact sheet: http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370540017677  

Crowdfunding Proposal: Quick First Look

Posted in Crowdfunding, SEC News

Today the SEC voted to propose a crowdfunding framework.  We provide highlights below based on today’s meeting: Intermediaries:  All offerings must be conducted through an intermediary that is either a registered broker-dealer or a registered funding portal.  The Commission is proposing a series of rules governing the activities of intermediaries participating in crowdfunding offerings.  The… Continue Reading

NASAA’s Perceived Threats

Posted in Private Placements

In its annual list of risks posed to investors and small businesses, NASAA once again identifies private offerings.  NASAA notes that “[f]raudulent private placement offerings continue to rank as the most common product or scheme leading to investigations and enforcement actions by state securities regulators.”  NASAA notes that the relaxation of the ban on general… Continue Reading

Crowdfunding Webcast

Posted in Crowdfunding, Events

On Tuesday, October 22, 2013, Morrison & Foerster partner David Lynn will participate in a ALI CLE webcast entitled “Crowdfunding: Will It Expand Your Clients’ Capital Raising Options?” The seminar will focus on the existing and proposed options for crowdfunding and how they may change capital raising options. For more information about the event, and… Continue Reading

Private Equity Structuring: The Basics

Posted in Crowdfunding, Events, SEC News

On Thursday, October 3, 2013, Morrison & Foerster partner Anna Pinedo will participate in an NYC Bar CLE conference. She will be speaking on a panel entitled “Compliance and New SEC Regulatory Opportunities for Private Equity Firms and the Ethical Implications” focusing on practical considerations and legal and compliance issues arising with general solicitation, crowdfunding… 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

FINRA to Consider Request for Comment on Crowdfunding

Posted in Crowdfunding

In its upcoming July 11th meeting, FINRA will consider a proposal to solicit comment via Regulatory Notice on proposed rules and related forms governing funding portals pursuant to Title III of the JOBS Act.   See the FINRA release:  http://www.finra.org/Industry/Regulation/Guidance/CommunicationstoFirms/P292644.

Class Action Relief in Crowdfunded Offerings?

Posted in Crowdfunding

In a recent speech, NASAA President Heath Abshure, while expressing support for increased access to capital formation, noted NASAA’s concerns about civil remedies for investors, including investors that participate in crowdfunding.  Abshure noted that “for crowdfunding to be successful, class action relief must be available to investors who are defrauded in an offering of crowdfunded… Continue Reading

JOBS Act at Year 1

Posted in Crowdfunding, Decimalization, Emerging Growth Company Status, Exchange Act Registration Thresholds, IPO On-Ramp, Private Placements, Regulation A+, Research, Rule 506

Any milestone, such as an anniversary, provides an opportunity for reflection and evaluation.  At the one-year anniversary of the JOBS Act, preliminary experience gives reason for some optimism.  The centerpiece of the JOBS Act, the “IPO on-ramp” provisions contained in Title I, have proven quite useful.  The SEC Staff’s guidance in the form of Frequently… 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

SEC Investor Advisory Committee Meeting

Posted in SEC News

On January 18, 2013, the Investor Advisory Committee held its first meeting of the new year.  SEC Chair Walters provided some opening remarks (seehttp://www.sec.gov/news/speech/2013/spch011813ebw.htm) in which she emphasized the Commission’s intentions of moving forward efficiently with the rulemaking required by Dodd-Frank and by the JOBS Act.  She commented on the pace of change in the… Continue Reading

FINRA Launches Funding Portal Form

Posted in Crowdfunding

As we noted, last month FINRA’s Board of Governors authorized FINRA to issue an interim form to seek essential information from prospective funding portals intending to apply for membership with FINRA pursuant to the JOBS Act.  FINRA has now announced the availability of the Interim Form for Funding Portals (“IFFP”), which is an online form… Continue Reading

FINRA 5123 Becomes Effective; FINRA Releases FAQs

Posted in Private Placements

Earlier this week, FINRA Rule 5123 relating to private placements became effective, and FINRA released a set of FAQs (see http://www.finra.org/Industry/Compliance/RegulatoryFilings/PrivatePlacements/FAQ/index.htm) to provide market participants with additional guidance.  The FAQs clarify that only private placements that are made to institutional accredited investors are exempt from the filing requirements, while those made to accredited investors that… Continue Reading