We use cookies to give you the best online experience. By using our website you agree to our use of cookies in accordance with our cookie policy. Learn more here.Close Me
On October 26, 2016, the SEC adopted final rules that modernize
how companies can raise money to fund their businesses through
intrastate and small offerings while maintaining investor
protections.
The final rules amend Securities Act Rule 147 to modernize the
safe harbor under Section 3(a)(11) of the Securities Act, so
issuers may continue to use state law exemptions that are
conditioned upon compliance with both Section 3(a)(11) and Rule
147. The final rules also establish a new intrastate offering
exemption, Securities Act Rule 147A, that further accommodates
offers accessible to out-of-state residents and companies that are
incorporated or organized out-of-state. To facilitate capital
formation through regional offerings, the final rules amend Rule
504 of Regulation D under the Securities Act to increase the
aggregate amount of securities that may be offered and sold from $1
million to $5 million. The rules also apply bad actor
disqualifications to Rule 504 offerings to provide additional
investor protection, consistent with other rules in Regulation D.
In light of the changes to Rule 504, the final rules repeal Rule
505 of Regulation D. Amended Rule 147 and new Rule 147A will be
effective 150 days after publication in the Federal Register.
Amended Rule 504 will be effective 60 days after publication in the
Federal Register. The repeal of Rule 505 will be effective 180 days
after publication in the Federal Register.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
With the end of the year approaching, your supporters may be thinking about making charitable contributions they can deduct on their 2017 federal tax returns.
According to the National Association of Corporate Directors ("NACD"), "there are number of things that Boards need to do as the number and magnitude of business risks increase."
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Video: Preparing For And Managing A Stock Drop
