HO, HO, HO, Merry [Insert Holiday Of Choice]!!! Just a quick note to my fantastic Blog followers, I am taking some time off to spend with friends and family. So, unless something monumental occurs in the next week or so, I won’t be posting any articles. That being said, I would like to take this time to thank everyone who has made my Blog such a success this year and wish each of you a safe and extremely happy holiday!……
Like many others, I have been hoping that Santa would bring us final Title III (general crowdfunding) and Title IV (Regulation A+) rules, or at least Title IV rules, by the end of 2014. Not a lofty goal when you consider the Jumpstart Our Business Startups Act (JOBS Act) was enacted in 2012. Just when I start to believe in holiday miracles again however, the S.E.C. comes along and basically says that Santa might not be coming this year.
As I have addressed in several of my prior posts, there is an ongoing debate as to whether the S.E.C. should modify the current “accredited investor” standards and, if so, how should they be changed. Regardless of how you may weigh in on the issue, it is hard to deny the fact that there is just not enough useable data regarding private placements (or the types of persons/entities that invest in them) to make an educated assessment as to the potential effects of any changes to these standards. I believe that, unless changes are made to the current certification process, credible data will never be available.
Last week I had the opportunity to attend the 2014 Government-Business Forum on Small Business Capital Formation in Washington D.C. where Commissioner Daniel M. Gallagher gave his opening remarks after the first panel. In what I can only refer to as a “mic drop” moment, he brought the audience to instant applause when we proclaimed, in no uncertain terms, that the S.E.C. should not be wasting its time protecting high net worth individual or, as he put it, “Millionaires can fend for themselves.”
Posted in Gen Crowdfunding
Tagged accredited investor, Commissioner Daniel M. Gallagher, crowdfunding, dodd frank, JOBS Act, Regulation A+, Regulation D, SEC, Secondary Market, Title II, Title III
While just recently uploaded, sometime in October David Tatman, the administrator of the Division of Finance and Corporate Securities, filed a “Statement Of Need And Fiscal Impact” with the Oregon Secretary of State proposing, what he refers to as, “Community Public Offerings” (CPOs) … which, between you and I, are intrastate crowdfunding offerings. While I applaud Administrator Tatman’s efforts in pushing intrastate crowdfunding forward, and his stated purpose for the proposed legislation, in my humble opinion this legislation misses its intended mark.