With all the excitement around the big SEC Title III Equity Crowdfunding announcement on Oct 30th it’s easy to overlook the fact that the SEC already enabled a potentially much more powerful set of rules earlier in 2015, which we are only now starting to see the effects of.
Guest post by Esuga T. Abaya, Julia D. Corelli, Robert A. Friedel – Pepper Hamilton LLP
On March 25, the U.S. Securities and Exchange Commission (SEC) adopted final rules amending Regulation A to implement the provisions of Section 401 of the Jumpstart Our Business Startups Act (JOBS Act).  The new rules confirm most of the rules that had been proposed by the SEC in December 2013.
Regulation A+, as the amendment has been called by market observers, expands the current Regulation A exemptions. All offers and sales require registration of the securities offered under the Securities Act of 1933 (Securities Act) unless an exemption applies. Regulation A is such an exemption and, consistent with the intention of the JOBS Act, is an attempt to make it easier for small businesses to raise capital. By adopting these new rules, the SEC intended to “craft a workable revision of Regulation A that would both promote small company capital formation and provide for meaningful investor protection.”