Last week we went over the different Titles in the Jobs Act and their effects on the crowdfunding industry; this week we are going to have a more macro-view of the progress made in legislation for the industry.
The Jobs Act was enacted April 5, 2012: Or really, after four years of regulations and implementations, the SEC is finally done creating new rules for the Jobs Act. So today, we’re just going to go over the final iteration of what is one of the, if not the most, important pieces of legislation to the crowdfunding industry as a whole.
To date, we’ve seen changes to the Exchange Act that altered registration, the termination of registration and the suspension of reporting obligations for banks/bank holding company/loan holding companies vs the other issuers. Some updates to the accredited investor definition (though there are still more updates to that in the works, which should make accreditation more easily accessible for our fellow investors) as well as the definition to “held of record”. The held of record definition has been altered so that an issuer may exclude securities held by persons who received them under an employee compensation plan. There has also been some changes seen to non-exclusive safe harbor.
These rules will be finalized within the month. Check out a more in depth guide by clicking here.