SEC releases proposed amendments to Regulation A


Yesterday the SEC released its proposed amendments to the small issuer exemption found in Regulation A, pursuant to the mandate in Title IV of the JOBS Act.  The JOBS Act requires that the amendments include an increase in the annual offering limit from $5 million to $50 million annually, and designate the securities offered under the modified rules as  “covered securities” in certain circumstances, meaning they would be exempt from application of state securities (“blue sky”) laws, which had been a serious impediment to the use of Regulation A in its current form.  Stay tuned for my upcoming memo describing the modifications in detail.