People raising money for a small business or real estate investment may be surprised that they are selling investment contracts subject to federal and state securities laws.
Read MoreEquity crowdfunding has become more popular due to recent increases in the annual fundraising limit in Regulation CF. However, due to other limitations in Regulation CF, Rule 506(c) usually is a better option for a real estate sponsor who wants to advertise its securities offering.
Read MoreAlthough the Securities and Exchange Commission's recent announcement that it will increase focus on ESG-related disclosures only applies to reporting companies, small businesses and private companies also can positively affect their communities and stakeholders with ESG initiatives.
Read MoreNew SEC rules harmonize Rule 506(b) and Regulation A disclosure requirements and make it easier for issuers to include nonaccredited investors in their offerings.
Read MoreIssuers should modify offering materials and forms and develop new policies before selling securities to new categories of accredited investors.
Read MoreThe SEC has reduced disclosure requirements for Rule 506(b) offerings sold to non-accredited investors so they match those in Regulation A.
Read MoreThe SEC has made it easier for issuers to verify accredited status for repeat investors under Rule 506(c).
Read MoreStarting in December individuals may be accredited based upon their credentials, and issuer employees may be accredited based upon their "knowledge." However, there is no bright-line test to determine which employees are sufficiently knowledgeable to be accredited investors.
Read MoreThe Securities and Exchange Commission has proposed a rule that would, under limited circumstances, allow unlicensed individuals to be compensated finders in certain securities transactions.
Read MoreThe SEC has adopted a rule expanding the definition of accredited investor to include certain securities professionals, knowledgeable employees of the issuer, and others.
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