After more than 15 months of delays, the SEC issued proposed rules and forms that would implement Title III of the JOBS Act on October 23, 2013. Title III will create an exemption from registration under the Securities Act of 1933 for certain "crowdfunding" securities offerings conducted through "crowdfunding intermediaries." The proposed rules clear up issues that arose from the $1 million capital raise maximum prescribed by Congress in Title III of the JOBS Act as well as the per investor maximums.
Under the rules, only securities sold in the crowdfunding offering would count towards an issuer's $1 million capital raise maximum. They will also permit crowdfunding issuers to rely on the efforts of crowdfunding intermediaries to determine whether an investor has reached the per investor limits prescribed by the statute.
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