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SEC/NASAA Provide Guidance on Application of Securities Laws to Opportunity Zone Investments

The SEC and the North American Securities Administrators Association ("NASAA") provided guidance for market participants on the application of federal and state securities laws to opportunity zone investments.

In order to help participants in the opportunity zone program understand the implications of compliance for qualified opportunity funds, the SEC and NASAA included in their summary:

  • the purpose and criteria for designating qualified opportunity zones;

  • when, under federal and state securities laws, interests in qualified opportunity funds ("QOFs") would be considered "securities";

  • the process for registering securities offerings with the SEC and/or state securities regulators, as well as possible exemptions from QOF registration; and

  • the potential application of broker-dealer and investment company regulations to QOF sales and products.

Primary Sources

  1. SEC Chair Jay Clayton: Statement on Opportunity Zones

Tags

Regulated Activities
Public Offerings Registration Requirement
Regulated Entities
Broker-Dealers Issuers of Securities Investment Funds (SEC Registered)
Body of Law
Securities Law
Jurisdiction
US - Federal
Organization
SEC Regulators' Associations
Sub-Author
NASAA