Federal Register: SEC Proposes to Ease Limits on Private Placements
An SEC proposal to amend the Securities Act exemptive framework was published in the Federal Register. Comments must be submitted by June 1, 2020.
As previously covered, the SEC is proposing amendments to the exemptive framework to expand its availability and make it easier to raise money under such exemptions. Under the proposal, the amendments would:
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raise permitted offering size thresholds for certain Regulation A offerings and for crowdfunding transactions;
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codify and impose greater limits on "integrate[d]" offerings, making it easier to effect private placements;
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permit the "testing of the waters" in connection with certain exempt offerings; and
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provide for an additional method of verifying a potential purchaser's status as an accredited investor under Rule 506(c) under the Securities Act.
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The SEC issued a concept release reviewing the framework for exempt offerings, particularly as to private placements. The agency is requesting public comment on ways to simplify, harmonize and improve that framework.
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The SEC proposed amendments to the Securities Act exemptive framework that would expand their availability and make it easier to raise money under those exemptions.