Politics

California Legislation for Equity Crowdfunding Climbs Sacramento Once Again

State of California Seal

California, the most populous state in the country, is attempting to legalized equity crowdfunding once again. Last year the Assembly gave it a valiant effort but the bill died ignominiously in Appropriations committee.  The execution was said to be delivered by the AARP, a group that sees crowdfunding as a potential way to defraud senior… Read More

Colorado Votes Yes to Expand Crowdfunding

Colorado_State_Capitol_(6265114682)

Colorado’s Senate today approved a bill that would make the state at least the 15th to create more straightforward regulations for residents who want to invest in Colorado companies through online intermediaries, noted the Associated Press. House Bill 1246, the Colorado Crowdfunding Act, would expand the pool of potential investors for private startup companies. Currently, Colorado law requires such investors… Read More

SEC Commissioner Daniel M. Gallagher Speaks to the Crowdfunding Ecosystem – It’s Time to Listen and Act

Daniel Gallagher SEC Speech

Having just read SEC Commissioner Daniel M. Gallagher’s remarks at Vanderbilt Law School last Friday,  he may not be the only champion of smart regulation for small business capital formation.  But he is surely one of the most visible and important voices in this area.  Apart from being extremely well qualified in this area, never… Read More

Commissioner Gallagher Delivers Incomplete Report Card to SEC; Derides Nanny State Protection

Incomplete

We reported on Saturday that Commissioner Daniel Gallagher had visited the land of the Commodores in Nashville and delivered a piercing speech where he labeled Title III, retail crowdfunding as similar to former East Bloc Germany. While I wondered who would play the role of Markus Wolf, the Stasi Spymaster, he was driving home a… Read More

Steering Group on Financial Technologies to Advise Chinese Government: Aims to Make Hong Kong Fintech Hub

China Yuan Renmibi

The Chinese government announced the establishment of the Steering Group on Financial Technologies to advise the Government on how to develop Hong Kong into and promote Hong Kong as a Fintech hub. The initiative to set up the Steering Committee was announced in the Financial Secretary’s 2015-16 Budget. Chaired by the Secretary for Financial Services… Read More

FACT SHEET: Regulation A+, Title IV of the JOBS Act

SEC Headquarters in DC

The Securities and Exchange Commission has put together a nice fact sheet on Title IV of the JOBS Act, commonly referred to as Regulation A+.  The final rules, available here, encompass a 450 page document sharing the process behind the decision making process.  The fact sheet is akin to Cliff Notes and provides a solid… Read More

Commissioner Gallagher: Title III Crowdfunding is “1970s East Germany”

Nva-ehrenwache East German Soldiers by Michail Jungierek

SEC Commissioner Daniel Gallagher gave a speech yesterday at the Vanderbilt Law School in Nashville. While the text of the speech is not yet available, Bloomberg has quoted  the Commissioner on Title III of the JOBS Act as being smothered by red-tape.  Effectively he is highlighting that a good policy idea has gone bad because crafted… Read More

Fundrise CEO Ben Miller: New Reg A+ is a “Goldilocks” Change in Regulatory Environment

The Fundrise Team Small

Fundrise, one of the first crowdfunding platforms in the United States, was an early innovator when it comes to real estate crowdfunding.  Founded by brothers Ben & Dan Miller, the pair started using old Regulation A to offer shares in small real estate deals. This was way back in 2010, years before the JOBS Act was… Read More

All in: CFIRA Applauds SEC Commissioners Approval of Reg A+

SEC Commissioners Should Finalize Regulation A

The U.S. Securities and Exchange Commission (SEC) unanimously adopted final rules on Wednesday to expand Regulation A, an existing securities registration exemption, under Title IV of the JOBS Act, often referred to as “Regulation A+.” The expansion of Regulation A will expand capital markets for small public securities offerings. The final rules, which will become effective in the… Read More

UK Scheme Promoting Alternative Lenders Should Be Off the Ground by 2016

balloon

If your small firm is rejected for a bank loan in Britain next year, consider hearing out the bank’s entire response: There are alternatives. A British government scheme that requires banks to refer small firms rejected for loans to alternative finance providers is expected to be underway by next year, noted the managing director of the British Business Bank,… Read More

NC Senate Files Intrastate Crowdfunding Bill

North Carolina Flag

North Carolina has taken another step towards enacting an intrastate crowdfunding law.  As reported last year, a bill nearly passed but in the end did not have enough support to cross the line.  In February we shared the NC House had introduced a bill.  According to JobsNC, the Senate has filed the North Carolina Providing… Read More

Title IV of the JOBS Act Final Rules (Document)

CorpFin SEC Title IV

Below is the “draft” of final rules of Title IV of the JOBS Act. Also known as Regulation A+ the below document will become final following a 60 day period after publication in the Federal Register. The 453 page document will be reviewed by the Office of Management and Budget under “Major Rule Analysis”according to… Read More

SEC to Require Broker/Dealers Active in Off-Exchange Market to Become Members of National Securities Association

SEC Commissioners Mary Jo White

The Securities and Exchange Commission today proposed rule amendments to require that broker-dealers trading in off-exchange venues become members of a national securities association.  The amendments are designed to enhance regulatory oversight of active proprietary trading firms, such as high frequency traders (HFT). “This proposal embodies a simple but powerful principle of the federal securities… Read More

The Reg A+ Bombshell: $50M Unaccredited Equity Crowdfunding Title IV takes Center Stage

SEC Commissioners too

In a stunning development earlier today, the SEC released final Regulation A+ rules under Title IV of the JOBS Act that pre-empts state law for larger Regulation A offerings up to $50M and provides for state coordinated review for offerings up to $20M.  Growth companies will now soon be able to raise up to $50… Read More

Final Rules for Title IV of the JOBS Act to Include State Pre-emption But for Tier 2 Only

Mary Jo White Title IV Hearing

The Securities and Exchange Commission met today to finalize rules for Title IV of the JOBS Act, commonly referred to as Regulation A+.  As expected the Commission quickly approved rules that included state Blue Sky pre-emption but for only Tier 2 of Title IV.  The vote for final rules was unanimous but included some reservations… Read More

Real Estate Firms Eye Forthcoming Rules of Regulation A+

Ben Franklin Close Up 100 hundred money dollars

Later this morning the Securities and Exchange Commission will be releasing final rules for Title IV of the JOBS Act otherwise known as Regulation A+. While the details are not yet know, the expectations are for proposed rules to allow raised of up to $50 million without having to go through the state review process…. Read More

LOOKING FOR THE EXIT – Commissioner Aguilar Presses On The Need For Greater Secondary Market Liquidity 

Where is the Exit 2

Earlier this month, Commissioner Luis A. Aguilar addressed the Advisory Committee on Small and Emerging Companies in Washing D.C. In his speech (embedded below), Commissioner Aguilar echoed the sentiments of the market in arguing the need for increased liquidity in the private placement market. His speech goes well beyond that point however, as he highlights… Read More

FCA Publishes Business Plan for Coming Year

British Pounds Money £10

The UK Financial Conduct Authority is a relatively new entity having only been formed in 2013, reconstituted from its predecessor the FSA.  The transformation, which saw the responsibilities of the FSA migrated over to three different regulatory bodies, was engendered in part by the financial crisis and the associated political realities. The FCA’s plan for… Read More

UK Government Creates P2P Impact Fund. Commits £2 Million for Social Enterprises

Peer to Peer Blue

The UK has just announced a new £2 million fund created to back social organisations via peer to peer lending and crowdfunding platforms. The announcement did not mention specific platforms by name by disclosed platforms are being reviewed with an announcement coming  which platforms have been selected later this year. The new “P2P Impact Fund”… Read More

SEC Schedules Open Meeting on Rules for Title IV of the JOBS Act

SEC Commissioners Mary Jo White

The Securities and Exchange Commission has announced an open meeting to be held on Wednesday, March 25th, to consider whether to adopt rules and forms related to the offer and sale of securities pursuant to Section 3(b) of the Securities Act of 1933 to implement Section 401 of the Jumpstart Our Business Startups Act.  This… Read More