Regulatory Update: SEC Proposal – Improvements to Regulation CF, Reg D and Reg A
On March 4th, 2020, The Securities and Exchange Commission (SEC) proposed a set of amendments to the exemptive framework under the Securities Act of 1933 that is intended to simplify, harmonize, and improve certain aspects of the framework to promote capital formation while preserving or enhancing important investor protections.
Regulation CF / Title III – Highlights:
No Investment Limits for Accredited Investors…
Capital Raise Limit Increased to $5mill…
Special-Purpose-Vehicles (SPV) Allowed…
SAFEs No Longer Allowed…
Testing the Waters Allowable…
And much more….
You can read the SEC’s summary here: https://www.sec.gov/news/press-release/2020-55
You can read the complete text here: https://www.sec.gov/rules/proposed/2020/33-10763.pdf
NOTE: This is not a complete discussion of the proposal and should not be construed as regulatory advise. Please contact us for additional information.
