October 28, 2015, posted by Kim Wales
Three years after the Securities and Exchange Commission released proposed rules for Title III, Regulation Crowdfunding, news was released yesterday that the Commission will take a vote on whether or not to release the final rules for Title III on Friday, October 30, 2015.
Given the challenges with the 653 pages of proposed final rules, I am hopeful that commission took into account the 300+ recommendation letters, numerous meetings and sideline protest that would amend the final rules into a usable form.
There were many changes requested but the top 3 included:
- Increasing the maximum raise from $1 million to $5 million during a 12 month period.
- Raise the cap from $500k to $750k before requiring the issuer to provide audited financial statements and to remove the yearly mandate.
- Remove the Liability on funding platforms, see page 280.
The meeting at the SEC is open to the public. It is scheduled to take pace at 10:00 AM in the Auditorium Room (L-002). The proceedings are expected to be live-streamed on the SEC web site.
The SEC outlined the meeting:
- The Commission will consider whether to adopt rules and forms related to the offer and sale of securities through crowdfunding under Section 4(a)(6) of the Securities Act of 1933, as mandated by Title III of the Jumpstart Our Business Startups Act.
- The Commission will consider whether to propose amendments to Securities Act Rule 147 and Rule 504.