The Investment Company Institute and the Managed Funds Association responded to an SEC concept release on Securities Act registration exemptions that facilitate capital raising.
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The SEC concept release reviewing the framework for exempt offerings was published in the Federal Register.
The SEC (i) raised the threshold above which non-reporting companies that offer certain compensatory benefit plans are required to deliver disclosures to investors, and (ii) requested comments on other potential changes to compensatory arrangements.
An internet-based financial technology company agreed to pay a fine to settle SEC charges that it issued stock options to employees without registering the offering or complying with relevant disclosure requirements.
The SEC Advisory Committee on Small and Emerging Companies considered (i) recommendations related to intrastate crowdfunding; (ii) the treatment of so-called "finders" that assist companies in capital-raising activities; and (iii) improving public company disclosure. In her remarks, Chair Mary Jo White noted the efforts of the SEC Division of Corporation Finance to actively consider ways to improve Securities Act Rule 147 ("'Part of An Issue,' 'Person Resident' and 'Doing Business within' for Purposes of Section 3(a)(11)"), which is the "safe harbor that issuers generally rely on for