On December 18, the Securities and Exchange Commission (SEC) issued a proposed rule to implement Title IV of the JOBS Act by amending Regulation A. Currently, Regulation A securities offerings are limited to $5 million and are subject to each state’s blue sky laws. The proposed rule would establish two different tiers of securities offerings under Regulation A. Tier One offerings would be for financings of $5 million or less, and these offerings would still be subject to the existing requirements of Regulation A. Tier Two offerings would be for up to $50 million and there would be an exemption from a state’s blue sky laws. However, Tier Two offerings would be subject to additional disclosure and auditing requirements.
Comments are due 60 days after publication of this proposed rule in the Federal Register.
• Link to the proposed rule rule: http://www.sec.gov/rules/proposed/2013/33-9497.pdf
• Submit comments on the proposed rule to the SEC electronically (File Number S7-11-13)
• Advocacy contact: Dillon Taylor or call at 202-401-9787