Tagged: regulations

SEC Investor Advisory Committee Meeting (Video)

Barbara Investors Committee SEC

The Investor Advisory Committee (IAC) of the SEC met last week to tackle several pressing issues that are on the agenda at the Commission today.  One of the items on the agenda was the definition of an “accredited investor”.  For most people this is an arcane issue that merits little attention, but once you dig… Read More

The Definitive Guide: Intrastate Crowdfunding Exemptions

Intrastate Crowdfunding Exemptions as of July 2014

With the Securities and Exchange Commission (SEC) dragging its feet on enacting Regulation CF pursuant to Title III of the JOBS Act, many states are taking action and passing their own intrastate crowdfunding exemptions. While these only pertain to businesses and investors within a particular state they can provide financing opportunities especially from a local… Read More

FCA Accused of Gagging Social Media Use with Equity Crowdfunding

Stop Social Media

  According to a release by the CrowdfundingCentre, a briefing and submission to Ministers handed to Treasury officials documents how the FCA (Financial Conduct Authority) is abusing legislation created before the social web existed to gag its use with equity crowdfunding. The report states the action, which extends to gagging anyone even mentioning a crowdfund… Read More

Texas Prepares for Equity Crowdfunding

Texas State Capital Building in Austin

Earlier this year, the Securities Board of the State of Texas had proposed rules on intrastate crowdfunding As previously reported, the new legislation will go into effect next month and as with other state investment crowdfunding laws, the intent is to facilitate capital to small businesses and startups – companies that are vital to the… Read More

SEC Investor Advocate Submits Inaugural Report to Congress

Rick Fleming

The Office of Investor Advocate (IA), a new role mandated by Dodd-Frank, has submitted its inaugural report to Congress.  In February of this year, SEC Chair Mary Jo White appointed Rick A. Fleming as the first Investor Advocate for the SEC. Fleming, a well known figure in the halls of the SEC, was previously counsel… Read More

Comment Letter on Blue Sky Review Preemption Submitted by a Handful in Congress

Disaster Thud Kaboom

Several members of congress (20 to be exact out of 435) submitted a comment letter to the SEC earlier this month that attacked the proposal to preempt blue sky review at the state level.  The letter takes the position that it was not the intent of Congress to preempt state authority regarding new rules for… Read More

Investor Advisory Committee Schedules Meeting, Will Discuss Accredited Investor Defination

Barbara Roper Investor Advisory Committee

The Securities and Exchange Commission has created an Investor Advisory Committee (IAC), as mandated by Dodd-Frank, to advise the SEC on regulatory practices and priorities.  You would think the SEC would get tired of all of these outside advisors but that is the world of a federal institution. Dodd-Frank directs the IAC to submit their… Read More

SEC Releases Small Business Capital Formation Report

Small Business Capital Formation

Last fall – way back in November 2013 – the SEC held their annual gathering of minds to discuss the challenges of small business capital formation.  The meeting was mandated by law under the “Small Business Incentive Act of 1980″.  This was their 32nd forum where the leading minds at the SEC convene to review… Read More

India Issues Consultation Paper on Crowdfunding

Map of India

The Securities and Exchange Board of India (SEBI) has issued a consultation paper  on crowdfunding.  The release was widely expected as India moves forward to regulate investment crowdfunding – similar to a growing number of countries around the world.  Comments on the paper are being invited until July 16, 2014.  The paper reflects much of… Read More

Brief: California Crowdfunding Bill Moves to Judiciary Committee

Scott Hauge

The bill that legalizes equity crowdfunding in the state of California continues to push forward.  On May 19th the proposed legislation passed the California Assembly unanimously and moved to the Senate.  This past Wednesday the bill was approved by the Senate Business Professional and Economic Committee 7 to 2.  Small Business California board members Mark… Read More

Changes to “Accredited Investor” Definition Could Clip the Wings of Angel Investors

I Love Angel Investors 2

Few words or phrases have the ability to affect the U.S. economy like the term “accredited investor.” Whether you know it or not, these two little words control $800 billion of private investment in the United Stated today. The standards for qualifying as an accredited investor have remained relatively unchanged since the 1980s but that… Read More

Central Bank of Ireland Issues A Consumer Notice on Crowdfunding Investors

Central Bank of Ireland

While the Irish government continues to have no plans to regulate the funding method option at this time, the country’s financial services regulator Central Bank of Ireland has issued a consumer notice about crowdfunding and peer-to-peer lending options. The Central Bank stated that since crowdfunding regulations have yet to be in place in the country, its… Read More

The Need to Enhance Equity Market Structure

Mary Jo White at Senate

Last week during a quick trip to New York City, SEC Chair Mary Jo White addressed the Sandler O’Neill & Partners, L.P. Global Exchange and Brokerage Conference. The title of her speech was “Enhancing Our Equity Market Structure” – a noble subject to be certain.  The SEC has an overflowing plate of regulations to address right… Read More

Accredited Investor Verification (Infographic)

Ben Franklin $100 Bill

The infographic below comes from VerifyInvestor – a company that is in the space of verifying accredited investors who may participate in private placements. As part of Title II of the JOBS Act there are verification requirements to participate (you just can’t promise to be wealthy).  The information below is a great high level description… Read More

Congressman McHenry: New Crowdfunding Bill Expected in July

Congressman Patrick McHenry

Congressman Patrick McHenry, one of the investment crowdfunding industry’s most resolute champions, was recently interviewed during a trip to Boston where he was apparently rallying troops and gathering feedback on crowdfunding legislation.  McHenry has always viewed retail crowdfunding as way to democratize access to capital:  help those small businesses in need of funding while creating… Read More

The Things Regulators Say in the UK & USA

Martin Wheatley FCA Quote Regulations

Crowdfunding Sees Growing Regulatory Support. “We are now looking for areas where the system itself needs to adapt to new technology or broader change – rather than the other way round. We want to ensure that positive developments, the ones that promise to improve the lives of consumers or clients, are supported by the regulatory environment. In… Read More

Finland Ministry of Finance Publishes Report on Crowdfunding

Finish Ministry of Finance Finland

The Finnish Ministry of Finance has published a report addressing the emerging crowdfunding industry and it’s impact on Finland. The document was authored by Aki Kallio and Vatteri Vento at the Ministry.  The report includes a small, high level survey from respondents involved in the industry. Finland is a relatively small economy and correspondingly crowdfunding… Read More

France’s First Mover Advantage in Crowdfunding Legislation: A Separate Legal Status for Crowdfunding Platforms

Innovation the French Way Fleur Pellerin

Last February Europe, Fleur Pellerin, the former minister of SME’s & Digital Economy, introduced a first draft that outlines a separate legal status for crowdfunding platforms in France. Though France was and still is lagging within the crowdfunding industry in terms of volume and entrepreneurial development, Pellerin’s draft was positively received in the sector. In… Read More

Michigan Seeks to Create New Type of Broker Dealer

Nancy Jenkins

Michigan has been one of the states at the forefront of allowing intrastate investment crowdfunding to occur as Title III retail crowdfunding remains in a regulatory holding pattern.  The state has found capable champions in the legislature and within the business community making crowdfunding a part of their economic policy.  The Michigan crowdfunding exemption was… Read More

Paul Niederer Charts Equity Crowdfunding Path for Australia

Paul Niederer

The Australian Small Scale Offerings Board, otherwise known as ASSOB, has been a recognized trailblazer of sorts in the investment crowdfunding world.  The platform has raised over $138 million for more than 300 small companies over the past few years.  ASSOB has been an oft cited platform that has efficiently allocated capital to SME’s in… Read More