Call for Comments: Massachusetts Poses 15 Questions on State Crowdfunding Exemption

Boston MassachusettsThe Massachusetts Securities Division has published a call for feedback regarding the state’s crowdfunding exemption.  The rules were released as an “emergency” measure and now state authorities are asking the crowdfunding industry and other interested parties to respond to the enacted rules.

Massachusetts has scheduled a public hearing on March 24th which will be held at the Securities Division office in Boston.  The agency has posted 15 different questions seeking feedback from vested interests from the investment  crowdfunding industry.

To paraphrase the questions:

  • Does restricting the offer to a single state limit the usefulness of the Exemption?
    Should the Securities Division consider adopting rules to facilitate offerings made in more than one state?
  • Should the Securities Division consider making the Exemption available for other forms of securities beyond debt & equity?
  • The Securities Division requests comments on the offering size limits which is set to $2 million now.
  • Is this investment limit an effective way to control the risk of an investor over-investing in a crowdfunding offering for non-accredited investors?
  • Ben Franklin $100 BillThe exemption excludes investment companies; hedge funds or similar investment vehicles; ’34 Act reporting companies; companies engage in oil, mining, or other extractive industries.
  • The Crowdfunding Exemption requires the issuer to establish a minimum offering amount.
  • The Securities Division requests comments on the practicability of this escrow requirement.
  • The Securities Division requests comments on the bad actor disqualification provision.
    Are the specified items of disclosure sufficient to protect investors’ interests in crowdfunding transactions?
  • The Exemption requires that specific risks of crowdfunded securities be disclosed
  • The Exemption requires that issuers provide a report to the Securities Division after 12 months,
  • The Crowdfunding Exemption does not mandate that issuers provide ongoing reports to investors.
  • Should the Crowdfunding Exemption require or permit the use of a crowdfunding portal to offer and sell the securities?
  • Should there be an Internet-based forum for potential investors to comment on and discuss these offerings?

The actual document is embedded below.

Written comments will be accepted until 5:00pm on Tuesday, March 24, 2015, and may be emailed to securitiesregs-comments@sec.state.ma.us (subject: “Crowdfunding Regulation”),
 

[scribd id=258152345 key=key-4JbjPOruC3DurlK2BC0K mode=scroll]



Sponsored Links by DQ Promote

 

 

Send this to a friend