Regulation A+ Is Here

A Plus Walking the Red CarpetWell, that didn’t take long.

It’s been a mere 457 days since the SEC proposed regulations under Title IV of the JOBS Act, aka Regulation A+, and a mere 1,070 days since the JOBS Act was signed into law. Yet the SEC approved final regulations today, with just a few tweaks from the proposed rules. Regulation A+ will go into effect in roughly 60 days.

The most important provisions of the proposed regulations survived intact: companies will be allowed to raise up to $50 million – from anyone, not just accredited investors – without approval from state regulators. You will still have to file a thick offering statement with the SEC, and investors – both accredited and non-accredited – will still be limited to investing 10% of the greater of income or net worth. Nevertheless, I expect Regulation A+ to be used very widely, indeed to transform the Crowdfunding landscape.

I’ll be providing a link to the final regulations shortly (as well as a bunch of other useful links), as well as some thoughts about where Regulation A+ will be most useful.

Title III, anybody?

Questions? Let me know.

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2 thoughts on “Regulation A+ Is Here

  1. Bob Smith March 27, 2015 at 3:01 am Reply

    The question is how much this is going to cost, especially in Tier II where disclosure and audit requirements are a heck of a lot like a fully public reporting company. Regulatory overhead is deadly for companies of this size. It’s also not obvious if a Tier II company can raise less than $20 million.

    Tier I looks a lot lighter, but I expect the state blue sky mandate will make it as useless as the former Reg-A was.

    • crowdfundattny March 27, 2015 at 9:27 pm Reply

      Yes, a Tier 2 issuer can raise less than $20 million.

      I’m about to post a long paper on Regulation A+ that should answer your other questions.

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