Seeking crowdfunding abroad: you still have to play by US rules
Earlier this month at the American Bar Association Business Law Section Fall Meeting, Paul Dudek, Chief of the SEC’s Office of International Corporate Finance, reminded US companies seeking funding abroad that they are still subject to US regulation. A US company that offers its securities on a foreign crowdfunding platform, for example, must make sure […]
Crowdfunding not number one on SEC’s to-do list
Well, as we’ve already pointed out, it will not be legally or logistically possible for the SEC to have its crowdfunding regulations in place by December 31. Some commentators have speculated that we might get the proposals December. Or January. All I can say with respect to timing is that at a tribute dinner on Thursday […]
What is an “offer” of securities and why should you care?
One aspect of US securities laws that frequently trips up the unwary is the fact that US law regulates both the offer and the sale of securities. This is unlike most other securities regulation regimes, and it seems counterintuitive to most folks. After all, if you offer securities in a way you shouldn’t have and […]
SEC proposes a new type of exempt offering under Regulation D
After months of delay and some drama, the Securities and Exchange Commission voted today to propose for public comment rules establishing a new type of offering that is not required to be registered with the SEC. New Rule 506(c) would permit any size of offering to be made using any form of “general solicitation or […]
US companies crowdfunding abroad: you might want to pack a securities lawyer alongside your umbrella!
It’s frustrating. We are all so ready to do crowdfunding. But we have to wait till the SEC and FINRA come up with their rules. Some US companies can’t wait and they have gone off to seek their fortunes (or at least funding) on foreign crowdfunding portals. Companies thinking of following them should make sure they have […]
The CrowdFunding Olympics
I’m a proud Brit and a proud Virginian (version 1.0) and I see no contradiction there. But it’s as a Brit I’m blogging today. I watched the Olympic Opening Ceremony on Friday night with some Indian and English friends (also Americans 1.0) and a couple of token Americans and I loved the CROWDFUNDING GAMES. The […]
Three things the SEC would like you to know right now
As we all know, the SEC is in the process of putting together its crowdfunding rules. Various people have been in to chat with the Staff about life, the Nats and oh by the way would you mind not regulating this thing I’m planning to do? In the course of those discussions, the SEC has been reminding folks of […]
Hold your horses, oxen, other draft animals
Whoa, says the SEC. Crowdfunding is going to be legal but it ain’t legal yet. Remember what I said about all investment crowdfunding having to be done through registered portals, and because there ARE no registered portals yet, there IS no investment crowdfunding? The SEC has just reminded us of that. So let’s reprise. Any kind of “market […]
The SEC rulemaking process begins
The SEC today announced that it would start accepting comments from the public on the rulemaking it has to undertake under the JOBS Act, even before it proposes any rules. When it does propose rules, you’ll get a chance to comment on them, but this is an opportunity to help shape the rules before they are proposed. […]
Getting upset about bad stuff that the JOBS Act doesn’t do
Yesterday on his Rolling Stone blog, Matt Taibbi took a swing at the JOBS Act, but missed and missed hard. Mr. Taibbi asks “how does a law exempting a Silicon Valley startup from independent accounting actually encourage investment?” Well, it wouldn’t help encourage investment if that’s what it did. It doesn’t. No-one is being exempted from independent […]