SEC's Rule 506(c): What Lies Ahead in 2015 and Beyond?
Currently, SEC Regulation A allows companies to sell some stock to the public without registering the securities. However, the monetary limit is too low and the regulatory burden too high to be of any realistic value.
Title II and Title III, the Access to Capital for Job Creators and Crowd-funding Acts respectively, focused on making initial financing more accessible and efficient by creating a new securities exemption, Rule 506(c) of Regulation D, that allows companies to publicly advertise their investment offerings, and in Title III by creating and regulating a new funding system that would allow anyone to buy shares in private companies.
Title IV updates Regulation A, an exemption that has rarely been used, to reduce compliance costs and making it more useful for entrepreneurs. Driven by the Jumpstart Our Business Startups Act (JOBS) of 2012, the SEC proposed changing Regulation A to make it a much more attractive for small and medium-sized enterprises (SMEs) to raise funds.
The rules will help companies 'going' public, prevent others from going public too early, and enable founders and early-stage investors to obtain liquidity and for investors to diversify earlier.
In this two-hour LIVE webcast, a panel of distinguished professionals and thought leaders assembled by The Knowledge Congress will review the significant changes in SEC Rule 506(c). Speakers will discuss the new Rule 506(c) and offer best practices in developing and implementing an effective crowd-funding plan compliant with securities laws.
Key topics include:
- SEC Rule 506(c) – an overview
- 506(c) opportunities and draw-backs
- Rule 506(b) vs. Rule 506(c)
- critical points of the Rule 506(c)
- Regulation A+ crowdfunding rules
- compliance costs, risks and obligations
- recent regulatory updates.
CLE credit available.