We use cookies to deliver our online services. Details of the cookies we use and instructions on how to disable them are set out in our Cookies Policy. By using this website you agree to our use of cookies. To close this message click close.

SEC Adopts Regulation Permitting Unregistered Crowdfunding Securities Offerings

16 November 2015

SEC Update

On October 30, the SEC completed a two-year effort to implement the exemption from Securities Act registration for “crowdfunding” securities offerings contained in Section 4(a)(6) of the Act by adopting Regulation Crowdfunding in substantially the form it had proposed. Crowdfunding is a method used by start-ups and other small businesses to raise money through solicitations on the Internet. These enterprises historically have raised funds primarily by soliciting donations or advance purchases of finished products. The new regulation will allow them to expand their fundraising methods by soliciting investments in their securities through a registered broker or a “funding portal" acting as an intermediary between the issuer and investors.

Read more: SEC Adopts Regulation Permitting Unregistered Crowdfunding Securities Offerings

The team

Loading data