SEC Proposes Rules to Update Regulation A

The Harvard Law School Forum on Corporate Governance and Financial Regulation 2014-01-08

Summary:

Editor's Note: Toby Myerson is a partner in the Corporate Department at Paul, Weiss, Rifkind, Wharton & Garrison LLP and co-head of the firm’s Global Mergers and Acquisitions Group. The following post is based on a Paul Weiss memorandum.

On December 18, 2013, the Securities and Exchange Commission (“SEC”) voted to propose amendments to its public offering rules to exempt an additional category of small capital raising efforts as mandated by Title IV of the Jumpstart Our Business Startups Act (the “JOBS Act”). The SEC has proposed to amend Regulation A to exempt offerings of up to $50 million within a 12-month period, and in so doing has created two tiers of offerings under Regulation A: Tier 1, for offerings of up to $5 million in any twelve-month period, and Tier 2, for offerings of up to $50 million in any twelve-month period. Rules regarding eligibility, disclosure and other matters would apply equally to Tier 1 and Tier 2 offerings and are in many respects a modernization of the existing provisions of Regulation A. Tier 2 offerings would, however, be subject to significant additional requirements, such as the provision of audited financial statements, ongoing reporting obligations and certain limitations on sales.

Click here to read the complete post...

Link:

http://blogs.law.harvard.edu/corpgov/2014/01/08/sec-proposes-rules-to-update-regulation-a/

From feeds:

Blogs.law Aggregation Hub » The Harvard Law School Forum on Corporate Governance and Financial Regulation

Tags:

practitioner publications securities regulation blue sky laws disclosure jobs act paul weiss sec sec rulemaking securities act small firms state law toby myerson

Authors:

Toby S. Myerson, Paul, Weiss, Rifkind, Wharton & Garrison LLP,

Date tagged:

01/08/2014, 14:10

Date published:

01/08/2014, 09:11