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.
2 thoughts on “Regulation A+ Is Here”
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.
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.