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Tag Archives: Reg D

Advisory Committee on Small and Emerging Companies

Posted in Advisory Committee on Smaller and Emerging Companies

The SEC has made available the archived version of the webcast from the most recent meeting, held on May 1, 2013.  The meeting included presentations from Duncan Niederauer, Chief Executive Officer of NYSE Euronext, and William Hambrecht, CEO of WR Hambrecht + Co., as well as discussions with several Commissioners.  The webcast is accessible from… Continue Reading

FundersClub Obtains Broker-Dealer Registration No-Action Relief

Posted in Broker-Dealer Registration, Crowdfunding, Private Placements, Rule 506 Rulemaking, 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’s Investment Advisory Committee Recommends Filing of General Solicitation Material

Posted in Rule 506 Rulemaking

The SEC’s Investment Advisory Committee has recommended that the SEC should require issuers relying on the exemption from the ban on general solicitation and advertising to file a form as a precondition for claiming the exemption, and also file with the SEC general solicitation and general advertising material they use in private offerings that rely… Continue Reading

Eliminating the Prohibition on General Solicitation for Commodity Pools

Posted in Rule 506 Rulemaking

When the SEC finalizes proposed rules that eliminate the prohibition on general solicitation and general advertising, private funds will be free to jump in and publicly offer their securities, right? Not so fast, especially if the private fund is a commodity pool under the Commodity Exchange Act. Among other things, Section 201(a)(1) of the JOBS… Continue Reading

Threat Level Orange

Posted in Crowdfunding, Rule 506 Rulemaking

The state securities regulators, NASAA, just recently published their list of financial products that pose investor protection concerns.  Not surprisingly given the level of rhetoric from the states, crowdfunding and internet-based offers of securities are at the top of the list of “new threats” to investors.  The state securities regulators caution that once JOBS Act… Continue Reading

The JOBS Act and Private Funds

Posted in Rule 506 Rulemaking

Section 201(a)(1) of the JOBS Act directs the SEC to repeal the ban on general solicitation and general advertising in securities offerings under Rule 506 of Regulation D and Rule 144A.  Can advertisements for hedge funds in Cigar Aficionado and The Wine Spectator be far behind? Not so fast.  The SEC has missed its July 4 deadline… Continue Reading

Confirmation of the Obvious: GAO Publishes Reg A Report

Posted in Regulation A+

The JOBS Act directed the GAO to undertake a study concerning the factors impeding greater use of currently Regulation A.  The GAO study examines trends in Regulation A offerings, noting that the number of offerings increased from 1992 through 1997.  This increase followed the SEC’s changes to the offering ceiling for Regulation A offerings from… Continue Reading

A Boon for Private Placements

Posted in Rule 506 Rulemaking

The JOBS Act was signed into law three months ago today, and much of the excitement thus far has been focused on the IPO on-ramp provisions.  However, the most significant, or perhaps most lasting, changes may actually result for the private placement market.  Although, on a relative basis, in recent years there have been fewer regulatory… Continue Reading

Whither the Title II Rulemaking?

Posted in Rule 506 Rulemaking

Title II of the JOBS Act directs the SEC to revise Rule 506 of Regulation D to provide that the prohibitions against general solicitation or general advertising in Rule 502(c) do not apply to offers and sales of securities made pursuant to Rule 506, provided that all purchasers of the securities are accredited investors.  The… Continue Reading