{"id":6061,"date":"2016-10-27T11:35:31","date_gmt":"2016-10-27T16:35:31","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=1189"},"modified":"2022-05-19T08:48:36","modified_gmt":"2022-05-19T13:48:36","slug":"sec-adopts-final-rules-modernize-fund-raising-intrastate-regional-offerings-enhance-information-reported-funds-enhance-effectiveness-risk-management-programs","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-adopts-final-rules-modernize-fund-raising-intrastate-regional-offerings-enhance-information-reported-funds-enhance-effectiveness-risk-management-programs\/","title":{"rendered":"SEC Adopts Final Rules to Modernize Fund Raising for Intrastate and Regional Offerings, Enhance Information that is Reported by Funds, and Enhance the Effectiveness of Risk Management Programs"},"content":{"rendered":"<div class=\"WordSection1\">\n<div class=\"\"><\/div>\n<div class=\"\"><span class=\"\">The SEC has adopted final rules\u00a0 to modernize the way companies are allowed to raise funds for their businesses via small and intrastate offerings, all the while keeping investor protections in place. \u00a0The final rules include amendment to\u00a0Securities Act Rule 147 and a new Securities Act Rule 147A for out-of-state residents and companies organized or incorporated outside the state.<\/span><\/div>\n<div class=\"\"><span class=\"\">\u00a0<\/span><\/div>\n<div class=\"\"><span class=\"\">Under the Rule 147A\u00a0 and Securities Act Rule 147 amendments, the current intrastate offering framework, which allows companies to raise funds from investors in their state without having to federally\u00a0register the sales and offerings, \u00a0would be modernized. \u00a0New Rule 147A would differ from Rule 147 in that it would \u00a0permit out-of-state residents \u00a0and companies outside the state, or companies that were incorporated outside the state, to access these\u00a0 securities offerings.\u00a0<\/span><\/div>\n<div class=\"\"><span class=\"\">\u00a0<\/span><\/div>\n<div class=\"\"><span class=\"\">There\u00a0are also now\u00a0amendments to Regulation D\u2019s Rule 504 that would grant registration exemption for offers and sales as high as $1M of securities within a one-year period, as long as the issuer does not qualify as an Exchange Act reporting company, blank check company, or investment company. The aggregate quantity of securities that could be offered and sold under Rule 504 within any yearlong period would go up from $1M to $5M. Meantime, the new final rules would repeal Rule 505, which \u00a0allowed for offerings of up to $5M yearly that were sold only to accredited investors or 35 non-accredited investors maximum.<\/span><\/div>\n<\/div>\n<div class=\"WordSection1\"> <a href=\"https:\/\/www.investorlawyers.com\/blog\/sec-adopts-final-rules-modernize-fund-raising-intrastate-regional-offerings-enhance-information-reported-funds-enhance-effectiveness-risk-management-programs\/#more-6061\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The SEC has adopted final rules\u00a0 to modernize the way companies are allowed to raise funds for their businesses via small and intrastate offerings, all the while keeping investor protections in place. \u00a0The final rules include amendment to\u00a0Securities Act Rule 147 and a new Securities Act Rule 147A for out-of-state residents and companies organized or [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3760,3761,3963],"tags":[],"class_list":["post-6061","post","type-post","status-publish","format-standard","hentry","category-sec-enforcement","category-securities-and-exchange-commis","category-securities-law-and-regulations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SEC Adopts Final Rules to Modernize Fund Raising for Intrastate and Regional Offerings, Enhance Information that is Reported by Funds, and Enhance the Effectiveness of Risk Management Programs &#8212; Investor Lawyers Blog &#8212; October 27, 2016<\/title>\n<meta name=\"description\" content=\"The SEC has adopted final rules\u00a0 to modernize the way companies are allowed to raise funds for their businesses via small and intrastate offerings, all &#8212; October 27, 2016\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/sec-adopts-final-rules-modernize-fund-raising-intrastate-regional-offerings-enhance-information-reported-funds-enhance-effectiveness-risk-management-programs\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"SEC Adopts Final Rules to Modernize Fund Raising for Intrastate and Regional Offerings, Enhance Information that is Reported by Funds, and Enhance the Effectiveness of Risk Management Programs &#8212; Investor Lawyers Blog &#8212; October 27, 2016\" \/>\n<meta name=\"twitter:description\" content=\"The SEC has adopted final rules\u00a0 to modernize the way companies are allowed to raise funds for their businesses via small and intrastate offerings, all &#8212; October 27, 2016\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"SEC Adopts Final Rules to Modernize Fund Raising for Intrastate and Regional Offerings, Enhance Information that is Reported by Funds, and Enhance the Effectiveness of Risk Management Programs &#8212; Investor Lawyers Blog &#8212; October 27, 2016","description":"The SEC has adopted final rules\u00a0 to modernize the way companies are allowed to raise funds for their businesses via small and intrastate offerings, all &#8212; October 27, 2016","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/sec-adopts-final-rules-modernize-fund-raising-intrastate-regional-offerings-enhance-information-reported-funds-enhance-effectiveness-risk-management-programs\/","twitter_card":"summary_large_image","twitter_title":"SEC Adopts Final Rules to Modernize Fund Raising for Intrastate and Regional Offerings, Enhance Information that is Reported by Funds, and Enhance the Effectiveness of Risk Management Programs &#8212; 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