Legal Blog

Anticipated Crowdfunding Rules

The 2012 JOBS Act required the SEC to issue rules in early 2013. So much for that. The SEC has still not even issued proposed rules to implement the Crowdfunding rules set forth in the JOBS Act. Even so, we have a reasonable idea as to what those rules will require when they do come out. First, companies will be able to publicly advertise and sell securities to anyone, regardless of the purchaser’s assets or income. Second, there will be limits as to how much money a company will be able to accept from a particular investor and that will be based on the investor’s income. Third, all sale transactions much be made through brokers or online funding portals that have registered with the SEC. Finally, the selling company will need to meet certain disclosure requirements and may need to make filings with the SEC (in addition to filing a Form D). We expect that the SEC will be issuing Crowdfunding rules later this year, but if you plan to take advantage of them, you should contact us now in order to prepare. Crowdfunding is coming…so we’re told.If you have questions about Crowdfunding or other securities issues, please contact Offit Kurman business law attorney Brent Salmons at (240) 507-1721 or bsalmons@offitkurman.com. Mr. Salmons has significant experience assisting clients in debt and equity fundraising as well as mergers and acquisition matters. His practice focuses on providing comprehensive legal advice to clients in diverse industries, including Telecommunications, Media and Technology, Government Contracting, Energy and Real Estate. To learn more about Offit Kurman – one of the fastest-growing, full-service law firms in the Mid-Atlantic region – please fill out our contact form. With over 100 attorneys in seven offices serving Washington DC, Baltimore, Philadelphia, Wilmington and Northern Virginia, the firm is well positioned to meet the legal needs of dynamic businesses and the people who own and operate them. You can also connect with Offit Kurman via Facebook, Twitter, Google+, YouTube, and LinkedIn.