SEC Seeks Public Comments on Ways to Ease Access to Private Placements

Posted on June 25th, 2019 at 5:40 PM
SEC Seeks Public Comments on Ways to Ease Access to Private Placements

From the Desk of Jim Eccleston at Eccleston Law LLC:

The Securities and Exchange Commission (“SEC”) recently requested public comments on easing access to private placements, according to their concept release.

“We are taking a critical look at our exemptions from registration to ensure that our multifaceted private offering framework works for investors and entrepreneurs alike, no matter where they are located in the United States,” said SEC Chairman Jay Clayton. “Input from startups, entrepreneurs and investors who have first-hand experience with our framework will be key to our efforts to analyze and improve the complex system we have today.”

The concept release considers, among other things, whether:  

  • The limitations on who can invest in certain exempt offerings, or the amount they can invest, provide an appropriate level of investor protection or pose an undue obstacle to capital formation or investor access to investment opportunities
  • The SEC should take steps to facilitate a company’s ability to transition from one offering to another or to a registered offering
  • The SEC should expand companies’ ability to raise capital through pooled investment funds
  • Retail investors should be allowed greater exposure to growth-stage companies through pooled investment funds, such as interval funds and other closed-end funds
  • The SEC should revise its exemptions governing the secondary trading of securities initially issued in exempt offerings

Finally, the SEC’s concept release also discusses the findings of a SEC staff report on the impact of Regulation Crowdfunding on capital formation and investor protection, which was required to be provided to the SEC no later than three years following the effective date of the crowdfunding rules.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, sec, jay clayton, securities, regulation crowdfunding, private placements

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