News & Analysis as of September 21, 2024

Securities and Exchange Commission (SEC)

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Crowdfunding is a method for raising capital whereby many individuals network and pool their funds, usually via the internet or social media. Crowdfunding methods are used in a variety of circumstances including, but not limited to, supporting charitable organizations, disaster relief, product development, artistic projects, and financing start-up companies. The passage of the JOBS Act of 2012 sought to broaden the use of crowdfunding in developing private capital for start-up companies by relaxing certain SEC investor registration requirements. less -

Finders and Unregistered Broker-Dealers

Venable LLP on 6/29/2023

The issue of when a person may be considered a “broker” or “dealer” and subject to registration as such under the federal securities laws, as distinguished from so-called finders (and therefore not subject to the panoply of...more

Nutter Securities Enforcement Update (22-01)

Nutter McClennen & Fish LLP on 2/1/2022

The Nutter Securities Enforcement Update is a periodic summary of noteworthy recent securities enforcement activity, settlements, decisions, and charges. ...more

SEC Focused on Enforcement in the Crowdfunding Space

Troutman Pepper on 10/18/2021

Following last year’s drastic increase in the annual limits permitted for crowdfunding campaigns, the Securities and Exchange Commission (SEC) has increased its focus on the regulation of crowdfunding, particularly for...more

SEC Amends Rule 15c2-11 to Enhance Publicly Available Information For Securities Quoted in the Over the Counter Markets

WilmerHale on 10/30/2020

The Securities and Exchange Commission (SEC) has amended Rule 15c2-11 (the amended Rule), which governs the publication of quotations in the over-the-counter (OTC) markets, i.e., quotes that are published away from a...more

Proposed Expansion of “Accredited Investor” Definition Would Benefit Issuers and Investors

Farrell Fritz, P.C. on 1/22/2020

The Securities and Exchange Commission is proposing to expand the definition of “accredited investor” to include additional entities that could bear the economic risks of investment and certain financially sophisticated...more

SEC Publishes 2018 Government-Business Forum Final Report

Mayer Brown Free Writings + Perspectives on 7/9/2019

The Securities and Exchange Commission recently released the final report from the 2018 Government-Business Forum on Small Business Capital Formation. The report highlights the recommendations of attendees in ranked order...more

Is Crowdfunding for You?

Bowditch & Dewey on 9/6/2018

Starting a new brewery takes money. Is crowdfunding the way to raise the funds you need? Crowdfunding allows a company to raise money online without registration under securities laws. There are other exemptions from...more

Social Media Compliance Guide For Issuers, Broker-Dealers, And Advisers

Mayer Brown Free Writings + Perspectives on 7/9/2018

[author: Trevor Starer] The use of social media raises many securities law and compliance challenges for issuers, broker-dealers, and investment advisers. This Compliance Guide summarizes briefly some key principles. ...more

FAQ: What Businesses Need to Know About Investment Crowdfunding

Ward and Smith, P.A. on 11/9/2017

What is Crowdfunding? Crowdfunding is a marketing tool that businesses use to obtain capital from a large number of individuals, typically over the Internet....more

The Guide to Social Media and the Securities Laws

Broker-Dealer Compliance + Regulation on 8/15/2017

The growing use of social media has created challenges for federal securities regulators, who must enforce antifraud rules that were written at a time when the prevailing technology was the newspaper. This Guide...more

SEC Releases White Paper on Crowdfunding

Morrison & Foerster LLP - JOBS Act on 3/14/2017

On February 28, 2017, the SEC released a white paper analyzing crowdfunded offerings during the first six months following the effective date of Regulation Crowdfunding (May 16, 2016). The white paper noted that crowdfunding...more

Crowdfunding Begins on May 16, 2016

Morgan Lewis on 5/11/2016

Funding portal registration is now available through FINRA. This LawFlash discusses funding portals, which are the intermediaries through which crowdfunding will occur, specifically regarding the registration process...more

Investment Management Legal + Regulatory Update - April 2016

Morrison & Foerster LLP on 4/21/2016

Regulation - Department of Labor Issues Fiduciary Regulations Under ERISA - The Department of Labor (DOL) issued its long-anticipated final regulation (the “Regulation”) defining who is a fiduciary as a result of...more

Shopping for Startups – SEC Offers Additional Guidance for Intermediary Crowdfunding Portals

BCLP on 4/15/2016

I previously wrote about the new rules of the Securities and Exchange Commission (“SEC”) allowing startups to utilize crowdfunding platforms to sell an equity stake in their business to investors in exchange for working...more

FinCEN Proposes Amendments to Bank Secrecy Act to Cover Crowdfunding Portals

Stinson - Corporate & Securities Law Blog on 4/4/2016

FinCEN, a bureau of the Department of the Treasury, has proposed amendments to the definitions of “broker or dealer in securities” and “broker-dealer” under the regulations implementing the Bank Secrecy Act. This rulemaking...more

Your daily dose of financial news The Brief – 4.4.16

Robins Kaplan LLP on 4/4/2016

It appears that Alaska Airlines has won in the pursuit of Virgin America’s operations, beating out rival JetBlue for the former Richard Branson venture. Alaska announced this morning that “had agreed to acquire Virgin America...more

Funding Portal Small Entity Compliance Guide

Morrison & Foerster LLP - JOBS Act on 3/7/2016

The staff of the Securities and Exchange Commission recently posted an updated “small entity compliance guide” that summarizes and explains the rules adopted by the SEC that implement a regulatory framework for intermediaries...more

Crowdfunding Is Something Worth Explaining to Investors

Blank Rome LLP on 3/1/2016

On October 30, 2015, the Securities and Exchange Commission (SEC) adopted new Regulation Crowdfunding to implement the requirements of the Jumpstart Our Business Startups Act. Regulation Crowdfunding prescribes rules...more

Crowdfunders and Crowdfunding Service Providers Beware

Stinson - Corporate & Securities Law Blog on 11/30/2015

If you are planning to move into the crowdfunding consulting or platform area make sure you are familiar with the SEC broker-dealer rules, which require registration before performing broker-dealer services. If you plan on...more

SEC Crowdfunding Rule Summary

Morgan Lewis on 11/9/2015

The SEC substantially adopts prior proposed rules. On October 30, pursuant to Title III of the Jumpstart Our Business Startups Act, which was passed in 2012, the US Securities and Exchange Commission (SEC) finally...more

Crowdfunding Regulations

Troutman Pepper on 11/4/2015

On October 30, 2015, the Securities and Exchange Commission (SEC) adopted final crowdfunding rules. More than two years after the publication of the proposed crowdfunding rules, the SEC approved regulations that permit...more

SEC Finally Adopts Federal Crowdfunding Rules: All That Glitters May Not Be Gold

Adler Pollock & Sheehan P.C. on 11/3/2015

On October 30, 2015, the Securities and Exchange Commission (“SEC”), by a 3-1 vote, adopted the long-anticipated final rules permitting federal crowdfunding (“Title III Crowdfunding”), providing a potentially attractive...more

Bridging the Week - November 2015

Katten Muchin Rosenman LLP on 11/3/2015

SEC to Permit Capital Raising Through Crowdfunding: The Securities and Exchange Commission finalized rules that will permit eligible companies to raise money through Internet offerings of their securities—a practice known as...more

Following the Wisdom of the Crowd? A Look at the SEC’s Final Crowdfunding Rules

Morrison & Foerster LLP on 11/2/2015

In this alert, we provide a detailed overview of the final rules, Regulation Crowdfunding, which will be applicable to crowdfunding offerings conducted in reliance on Section 4(a)(6) of the Securities Act of 1933 as amended...more

SEC Issues Final Rule on Crowdfunding, Proposes Amendments to Existing Rules to Facilitate Small Business Capital Raising

Ballard Spahr LLP on 11/2/2015

Last week, the U.S. Securities and Exchange Commission (SEC) adopted the final rule permitting crowdfunding, permitting investors to purchase securities over the Internet using a crowdfunding exchange, on October 30, 2015....more

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