The JOBS Act was signed into law by President Obama on April 5, 2012. The SEC was supposed to issue regulations under Title III 270 days later, by December 31, 2012. Instead, the SEC issued final Title III regulations last Friday, which will become effective around May 1, 2016, or about 1,466 days after enactment.
But better late than never! In its final regulations the SEC has again bent over backward to make Crowdfunding easier, for example:
- Liberalizing the financial disclosures required of issuers
- Clarifying that a Title III offering will not interfere with other exempt offerings
- Allowing Title III portals to pick and choose among issuers
- Allowing Title III portals to take financial interests in issuers
Hat’s off the to the SEC staff for doing excellent work with a flawed statute!
For those of you who want to read all 686 pages of preambles, regulations, and forms, here’s a link.
This is a brave new world, the transformation and democratization of the U.S. capital formation industry. I am very, very interested to hear what all of you think.
Mark Roderick is spearheading Flaster/ Greenberg’s Crowdfunding Practice. He speaks and writes regularly on Crowdfunding. Expanding on his in-depth knowledge of capital-raising and securities law, Mark represents many portals and other players in the Crowdfunding field, spending much of his day helping entrepreneurs build an entirely new industry from the ground up.
Mark also maintains a widely-read Crowdfunding blog at crowdfundattny.com. In addition to Flaster/ Greenberg’s Crowdfunding Practice, Mark is also a member of the firm’s Mergers and Acquisitions, Business and Corporate, and Taxation Practice Groups. He represents entrepreneurs and their businesses across a wide range of industries, including technology, real estate and healthcare. Mark holds a Master’s degree in mathematics as well as a J.D. from the University of Virginia. You can reach Mark at 856.661.2265 or mark.roderick@ flastergreenberg.com.