by: Grow VC Group
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The JOBS Act, signed on 5 April 2012, was intended to ease the regulatory burden on smaller companies and expand and simplify the means by which such companies could raise capital. On October 30, 2015, the SEC adopted the final rules and forms implementing the new Section 4(a)(6) of the Securities Act of 1933, as amended (the “Securities Act”), allowing issuers to sell securities to the public under certain circumstances without registering such securities with the SEC. The rules will be effective in late April 2016.

As also discussed below, the crowdfunding rules require that all offerings be conducted through a registered broker or funding portal. FINRA has proposed rules that will enable registration for “funding portals”, though these rules have not yet been accepted the SEC.

You can read the details on Crowd Valley Blog, covering, for example, the following topics:

  • Section 4(a)(6) of the Securities Act
  • Capital Raising Limitation for Issuers
  • Investment Limitations for Investors
  • Transactions Must Be Conducted Through an Intermediary and Online Only
  • Ineligible Issuers and Bad Actors
  • General Disclosure Requirements
  • Advertising and Communications
  • Restrictions on Promoter Compensation
  • Integration
  • Resales and Restrictions on Types of Securities Offered
  • Exemption from the Section 12(g) Stockholder Cap
  • Liability for Material Misstatements or Omissions
  • Framework for Crowdfunding Intermediaries
  • Registration with the SEC and FINRA
  • Prohibition on Financial Interests
  • Measures to Reduce Risk of Fraud
  • Account Opening and Educational Materials
  • Issuer Information and Investor Limitations
  • Closing an Offering and Cancelling an Investment
  • Communication between Investors and the Issuer
  • FINRA Registration as a “Funding Portal”

SEC HQ Washington D.C.


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Grow VC Group The Grow VC Group is the world leading, global pioneer of securities crowd funding, peer to peer marketplaces, new investment models and global business development. Established in 2009, the Group has developed new investment models on six continents and continues to innovate the global market.

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This entry was posted on Monday, December 28th, 2015 at 4:00 pm and is filed under Business Updates. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.