Regulatory Update: SEC Amendments to Regulation CF, Reg D, Reg A and more are APPROVED!
Today the SEC voted to approve the long anticipated amendments to Regulation Crowdfunding (Reg CF)! The amendments will be effective 60 days after publication in the Federal Register.
SUMMARY
This effects Reg A, Reg D, Reg CF and other rules related to capital raises. For Regulation Crowdfunding (Reg CF), the amendments include:
raising the offering limit in Regulation Crowdfunding from $1.07 million to $5 million;
amend the investment limits for investors in Regulation Crowdfunding offerings by:
removing investment limits for accredited investors; and
using the greater of their annual income or net worth when calculating the investment limits for non-accredited investors; and
extending for 18 months the existing temporary relief providing an exemption from certain Regulation Crowdfunding financial statement review requirements for issuers offering $250,000 or less of securities in reliance on the exemption within a 12-month period.
The following link provides a summary of the forthcoming amendments: https://www.sec.gov/news/press-release/2020-273
The final rule linked here details the amendments specifically: https://www.sec.gov/rules/final/2020/33-10844.pdf
EFFECTIVE DATE PENDING
The amendments will be effective 60 days after publication in the Federal Register, except for the extension of the temporary Regulation Crowdfunding provisions, which will be effective upon publication in the Federal Register.
