The Investor Advisory Committee is scheduled to convene today at the SEC headquarters in Washington, DC. The agenda in the afternoon (on the schedule for 2PM) includes an update on crowdfunding rules. The presentation on investment crowdfunding includes the participation of two well known industry advocates Chris Tyrrell and Sara Hanks.
Tyrell is current Board Chair of the Crowdfund Intermediaries Regulatory Association (CFIRA) and but he spends the majority of his time leading the investment platform OfferBoard. Hanks, a former SEC attorney, is founder and CEO of CrowdCheck, a crowdfunding compliance firm. She is also a board member of CFIRA.
There are currently three iterations of crowdfunding actionable in the US today: Accredited crowdfunding, under Title II of the JOBS Act and Regulation A+, under Title IV of the JOBS Act. The final exemption, Regulation CF, under Title III of the JOBS Act, becomes actionable in May.
The young industry holds great potential but is not without its challenges. But that is part of the process of evolution.
Hanks told Crowdfund Insider;
“Nobody thinks that Regulation CF is perfect, but it doesn’t need to be. It’s workable, and at transaction costs that make sense for small offerings. There are sufficient investor protections built in that fraud should be minimized. Education is essential: education of investors, intermediaries and especially issuers. When I look at all the constituent members of the crowdfunding community, it’s actually the issuers I worry about most.”
Also presenting in front of the IAC are representatives of the AARP and NASAA. These two entities most likely will take a “cautious” approach regarding the new form finance. NASAA has consistently been critical about investment crowdfunding and, at one point, listed it as a “top investor threat”.
Tyrrell diplomatically commented on today’s meeting;
“I am looking forward to the opportunity to talk with the IAC about the impending launch of the Title IIII market and the things the industry is doing to foster investor protection and efficient marketplace operations.”
The event will be live-streamed on the SEC web site starting at 10AM today. While the presentation on crowdfunding is scheduled for 2PM, occasionally things do run late – or get moved around.