While you were Quarantining – the Private Offering Regulatory Framework Gets a Makeover – What’s New and What you Need to Know.

On March 15, 2021, at long last, the Securities and Exchange Commission (“SEC”)’s proposed amendments to the private offering rules (a process which began in June 2019 via a concept release) are anticipated to go into effect. Their goal? To (i) harmonize, simplify, and improve the existing framework; (ii) promote capital formation; (iii) expand investment opportunities for entrepreneurs and emerging businesses; and (iv) promote growth for companies of all sizes. The revised framework also endeavors to expand the pool of potential investors eligible to participate in private offerings while also preserving and improving investor protections.  In addition, effective December 8, 2020, new categories of qualifying natural persons and entities were added to the definition of “accredited investor.”

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