Client Alert: SEC Approves Rules Governing Federal Crowdfunding

Client Alerts

Thursday, November 5, 2015

On October 30, 2015, the Securities and Exchange Commission (SEC) finally approved Regulation Crowdfunding, providing small businesses a new option to publicly sell up to $1 million in equity securities through registered intermediaries over the internet. The regulation implements requirements passed into law as part of 2012’s Jumpstart Our Business Startups (JOBS) Act intended to facilitate the raising of capital from numerous investors without the expense of traditional SEC registration.

This Client Alert (see link above), issued by the Wyrick Robbins Capital Markets Practice Group, provides a overview of Regulation Crowdfunding, including offering and investment limits, restrictions on intermediaries, disclosure requirements, eligibility rules, and expected date of effectiveness.