If you want to raise money for your business, there are several options available through a private offering. One example is SEC Regulation D Rule 506C. This rule was enacted in 2012, and it provides businesses with an opportunity to raise money from private investors without having to register. This rule also allows companies t
Category: Securities Law 171
If you want to raise money for your business, there are several options available through a private offering. One example is SEC Regulation D Rule 506C. This rule was enacted in 2012, and it provides businesses with an opportunity to raise money from private investors without having to register. This rule also allows companies t
Insider trading has been one of the major focuses of the Securities and Exchange Commission (SEC) for a long time, and the SEC recently announced that it has adopted amendments to Rule 10b5-1. This rule is found under the Securities and Exchange Act of 1934, and the goal of the amendments to rule Rule 10b5-1 is to increase the d
Traders face a variety of risks related to clearance and settlement. Now, the SEC might be making changes that can reduce the risks during this process. In February, the SEC announced that it is proposing new amendments and rules to protect investors. The goal of these changes is to reduce the risks faced by investors during sec
Cyber security is one of the biggest issues in the financial world, and the SEC is announcing potential rule changes that are designed to increase the transparency of disclosures related to cyber security. That way, investors have the information they need to appropriately manage their risk.
Public companies are required to c
The SEC has proposed a variety of changes to the interactive data rule, and they are seeking feedback from people on how the change might impact their day-to-day operations.
In early March, the SEC announced that changes could be made to the rule regarding interactive data. Issuers who are filing registration statements under
Private fund investor protection has been a significant topic of discussion in the financial community during the past few years. Now, it appears that the Securities and Exchange Commission (SEC) has decided to issue a new proposal to increase the protection of private fund investors.
The commission has voted to propose new a
On June 25, 2020, five agencies, including the OCC, Board, FDIC, SEC, and CFTC, adopted amendments to Section 13 of the BHC Act, also known as the Volcker Rule.
OCC here refers to Department of Treasury, Office of the Comptroller of the Currency
Board refers to the Federal Reserve System
FDIC refers to the Federal Dep
On June 22, 2020, the Securities and Exchange Commission and the Antitrust Division of the Department of Justice signed an inter-agency MOU for enhancing competition in the securities industry. Assistant Attorney General Makan Delrahim of the Antitrust Division and the SEC Chairman Jay Clayton executed the historic Memorandum of
In addition to Federal securities laws, states have their own securities regulations designed to protect investors which are referred to as Blue Sky Laws. Just like the SEC, states require securities to either be registered or exempted from registration before offering to investors of that state.
Filings must be made by the i
The SEC published a Framework for Investment Contract Analysis of Digital Assets on April 3, 2019. The analysis provides guidance for applying the Howey test to digital assets to determine if they are investment contracts or securities. The test was created in the 1946 U.S. Supreme Court case, SEC v. W.J. Howey Co.
The Ho
The House of Representatives recently passed H.R. 4263 on March 15, 2018, titled the Regulation A+ Improvement Act. Regulation A+ is comprised of two separate tiers regarding offerings, titled Tier 1 and Tier 2. Both of these tiers detail several minimum requirements, that include issuer eligibility and disclosure requirements.
In August of 2016, the SEC adopted the proposed amendments to the Investment Advisers Act, in addition to the investment adviser registration and reporting form, commonly known as Form ADV. These changes were designed to provide the public with additional information and disclosures, help investment advisers have more efficient
President Trump issued executive order 13,772 on February 3, 2017, which aimed to regulate the U.S. financial system with a set of core principles. In response, the U.S. Department of the Treasury prepared a report titled, “A Financial System That Creates Economic Opportunities: Capital Markets”, to identify all laws and reg
Raising money from investors for your business involves understanding complex securities rules and regulations and federal and state filing requirements for proper compliance. Whether you own a small business or a large corporation, it is vital to consult an expert to ensure that you are compliant with all the necessary securiti
DTC, or Depository Trust Company, founded in 1973, is the largest depository globally with over thirty-five trillion dollars worth of securities on deposit. It operates a securities settlement system and provides services, including depository and book-entry services. Other services also include dividend and interest payments, t
This act, if approved by the senate and the President, will direct the SEC to revise its previous regulations regarding the qualifications of natural persons as accredited investors. This act amends Section 2(a) (15) of the Securities Act by striking “; or” and inserting certain sections.
Under the act, an accredited inve
There is a saying that it is better to give than to receive, and that is certainly the case when it comes to transferring ownership of stock to someone else. Unfortunately, rules and regulations have made it hard for you to simply go through the process of gifting S Corp Stock to someone else. Regardless of whether you want to c
The Financial Industry Regulatory Authority, or FINRA, made key changes in the way corporate actions are handled this past year, including eliminating time-consuming paperwork and adding issuer fees for corporate action processing.
As far as paper elimination is concerned, FINRA has created interactive PDF documents for both