SEC Proposes Rules and Forms Amending Regulation A (with Delta Strategy Group Summary)

The SEC held a public meeting to propose rules and forms related to the offer and sale of securities pursuant to Section 3(b) of the Securities Act, as mandated by Title IV of the Jumpstart Our Business Startups Act (the "JOBS Act"). The JOBS Act mandated the SEC increase offering guidelines, which allow small companies to issue securities and be exempt from registration. The current SEC Regulation A ("Reg. A") allows for small companies to issue securities and be exempt from registration for offerings up to $5 million in a 12-month period. The proposed rule amendments keep that limit but also add an additional higher-level tier as mandated by the JOBS Act. All of the SEC Commissioners supported the adoption of the rule and form proposals.

Click here to see a summary of the meeting by Delta Strategy Group.
See: Text of Proposed Rule Amendments.
Related news: SEC Proposes Amendments to Reg. A to Increase Access to Capital for Smaller Companies (December 18, 2013).