Department Of Corporations Issues Crowd Funding Bulletin
Last week, the Department of Corporations issued this bulletin which it styled as a “Crowdfunding Update”. The Bulletin makes several important points. Until the Securities and Exchange Commission adopts regulations, there is no federal crowd funding exemption. It should be noted that Congress mandated that the SEC adopt these regulations by December 31, 2012. As of today’s date, the SEC Read more...
SEC Faces A Swarm Of Legal Issues In Considering The Investor Advisory Committee’s Recommendations Concerning General Solicitation
The SEC’s Investor Advisory Committee held another meeting last week with Elisse B. Walter making her first public appearance as SEC Chairman. She and Commissioner Luis A. Aguilar had many kind words for the Committee’s recommendations with respect to lifting the ban on general solicitations in Rule 506 offerings. The insouciance of their remarks, however, was in sharp contrast with Read more...
DOC Warns Financial Services Licensees And Can A Theory Be A Tautology?
Last April, the Consumer Financial Protection Bureau issued this Bulletin cautioning supervised banks and certain non-depository financial services companies that they must have “an effective process for managing the risks of service provider relationships”. Like many regulatory requirements, the Bulletin has given birth to both a new industry and unintended consequences. The new industry is third-party risk management. This is a screening service provided to financial service Read more...
Can The SEC Eliminate The Prohibition On General Solicitation Retroactively?
In Section 201(a)(1) of the Jumpstart Our Business Startups (JOBS) Act, Congress ordered the Securities and Exchange Commission to amend Regulation D to permit general solicitation or general advertising in offerings made under Rule 506, provided that all purchasers of the securities are accredited investors. See Chowing Down On The JOBS Act And Ralston Purina. Congress imposed a specific deadline Read more...
Will The Pilot Know When A Corporation Has “Crost the Bar”?
Section 12(g)(1) of the Securities Exchange Act previously required issuers with total assets of $10 million and a class of equity securities held of record by 500 or more persons to register the security with the Securities and Exchange Commission. Registration was required within 120 days after the last day of the issuer’s first fiscal year ended on which it met both tests. Read more...
