The final rule updates to Rules 147 and 504 have finally hit the pages of the Federal Register. Now the countdown begins for the rules to become actionable.
The amendments to Rule 147 and new Rule 147A are designed to facilitate capital formation, including through offerings relying upon intrastate crowdfunding provisions under state securities laws.
The amendments to Rule 504 of Regulation D will increase the aggregate amount of securities that may be offered and sold in any 12-month period from $1 million to $5 million and disqualify certain bad actors from participation in Rule 504 offerings.
Simultaneously the SEC also repealed Rule 505.
The Federal Register posted the effective dates as follows:
Effective date: Revised 17 CFR 230.147 (Rule 147) and new 17 CFR 230.147A (Rule 147A) will be effective on April 20, 2017. The amendments to 17 CFR 230.504 (Rule 504) and 17 CFR 200.30-1 (Rule 30-1) will be effective on January 20, 2017. The removal of 17 CFR 230.505 (Rule 505) will be effective on May 22, 2017. All other amendments in this rule will be effective on May 22, 2017.