Another way to give input on the changes coming to startup and emerging company financing

There is a committee, the "Advisory Committee on Small and Emerging Companies," which from time to time gives the SEC recommendations that flow from a "focus on interests and priorities of small businesses and smaller public companies."

Pc-gold-noticeAccording to this public notice, this committee is going to have an open and web-cast hearing on September 17, to discuss "matters relating to rules and regulations affecting small and emerging companies under the federal securities laws."

Here's what's in play right now, ranked more or less in order of which will come first:

  • How extensive will the changes be to Regulation D and the Form D filing requirements, both for Rule 506(b) and Rule 506(c). Will there be Form D notice pre-filing and information filing requirements for issuers that utilize Rule 506(c) (allowing general soliciation and general advertising as long as all purchasers are accredited and the issuer takes reasonable steps to verify the accredited status of such purchasers)?
  • Will transitional rules make those who use 506(c), come September 23, regret that choice?
  • Will the accredited investor definition continue to discriminate against investors who meet the objective financial standards, but are discriminated against because they are in a same-sex relationship and live in jurisdictions that do not permit them to marry?
  • Will the GAO report recommendations on changes to the accredited investor standard be construed or applied make it easier to be an accredited investor (providing additional ways for natural persons to satisfy the test), or to make it harder (raising thresholds or piling on additional requirements to be satisfied)?

Schedule permitting, I will plan to live blog the webcast on September 17. In the meantime, the notice invites the public to submit "statements."

So here is yet another way to give input on the changes coming to startup and emerging company financing.

Photo: Archives New Zealand.


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