SEC Publishes Investor Bulletin on Crowdfunding

The SEC Office of Investor Education and Advocacy ("OIEA") issued an Investor Bulletin to "educate investors about a new investing opportunity in the form of securities-based crowdfunding." In the bulletin, the OIEA:

• specifies yearly crowdfunding investment limits determined by an investor's total net worth and annual income;

• provides instructions for making crowdfunding investments through broker-dealers or funding portals;

• details the disclosure and investor education requirements for issuers of crowdfunding offerings;

• explains the risks associated with crowdfunding investments;

• outlines the differences between being a crowdfunding investor and an investor in publicly listed companies; and

• lists additional resources for obtaining information about crowdfunding.