SEC Adopts Amendments That Ease Limits and Rules on Private Offering Exemptions

10th November 2020

The Securities and Exchange Commission (“SEC”) adopted amendments proposed in March 2020 in order to simplify, harmonize and modernize the private offering framework in an effort to promote capital formation while preserving investor protections. The amendments generally:

• establish more clearly the ability of issuers to move from one exemption to another;
• increase the offering limits for Regulation A, Regulation Crowdfunding, and Rule 504 offerings, and revise certain individual investment limits;
• set clear and consistent rules governing certain offering communications, including permitting certain “test-the-waters” and “demo day” activities; and
• harmonize certain disclosure and eligibility requirements and bad actor disqualification provisions.

Click here for SEC Final Rule