The JOBS Act was signed into law by President Obama on April 5, 2012. The SEC was supposed to issue regulations under Title III 270 days later, by December 31, 2012. Instead, the SEC issued final Title III regulations last Friday, which will become effective around May 1, 2016, or about 1,466 days after enactment.
But better late than never! In its final regulations the SEC has again bent over backward to make Crowdfunding easier, for example:
- Liberalizing the financial disclosures required of issuers
- Clarifying that a Title III offering will not interfere with other exempt offerings
- Allowing Title III portals to pick and choose among issuers
- Allowing Title III portals to take financial interests in issuers
Hat’s off the to the SEC staff for doing excellent work with a flawed statute!
For those of you who want to read all 686 pages of preambles, regulations, and forms, here’s a link. For others, I’ve written a Title III Primer: Outline for Portals and Issuers
This is a brave new world, the transformation and democratization of the U.S. capital formation industry. I am very, very interested to hear what all of you think.
Thanks for reading.
Questions? Let me know.