Today, the SEC’s Office of Small Business Policy released the Final Report from its SEC Government-Business Forum on Small Business Capital Formation held in November 2011 in Washington D.C.
During this Forum, the committee made a total of 25 recommendations. The most popular and important being that the prohibition on general solicitation and advertising should be eliminated for Rule 506 transactions and other capital raising transactions if purchasers are limited to those who are otherwise adequately protected.
As a result of this Forum, the drafting committee consisting of members of the committee authored a letter to outlining their proposals and suggestions concerning the proposed Model Crowdfunding Exemption circulated to NASAA members in January. You can find their letter here.
To read the full Final Report, click here.
Author: Jennifer Trowbridge, Stoecklein Law Group