The Financial Report — Volume Two, No. 17 — 26 September 2013
Even some financial services industry professionals are confused. The 80-year-old prohibition on general solicitation ended on Monday of this week. This means it is now legal for companies to solicit certain qualified investors and to advertise that they are seeking to raise capital. This change was mandated under Title II of the JOBS Act.
The rules for crowdfunding, the ability of ordinary or ‘retail investors’ to make small investments in, typically, start-up businesses, have not yet been adopted, or even proposed, however. In fact, the mandate for crowdfunding is created by a different section, Title III of the JOBS Act, than the lifting of the ban on general solicitation.
It is possible that the confusion was caused by vocal supporters of crowdfunding, many of whom have grown impatient waiting for the SEC to propose and adopt rules for this potential new market. The JOBS Act had set the end of last year as the deadline for final rules on crowdfunding, a deadline that clearly has been missed…
If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The Australian Taxation Office released a draft ruling on the Goods and Services Tax treatment of bitcoin transactions on 20 August 2014.
DLA Piper’s ‘Life sciences: patent extension strategies and antitrust global update’ video covers global antitrust and competition issues including product hopping and reverse payment patents.
Analysis from The Lawyer
Cross-border work and political tensions are dominating this year’s entries for Finance Team of the Year at The Lawyer Awards.
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work