SEC Adopts Final "Regulation A+" Rules Expanding Exemption

Congress enacted the JOBS Act in 2012 with the purpose of assisting small businesses and boosting job creation. Section 401 of the JOBS Act directed the Securities and Exchange Commission to adopt rules exempting offerings of up to $50 million of securities annually from the registration requirements of the Securities Act of 1933 (the Securities Act). On March 25, 2015 the SEC adopted final rules amending Regulation A under the Securities Act by expanding and updating the exemption from registration under existing Regulation A. The following is a summary of the key aspects of the final rules, which go into effect June 19, 2015.

Eligible Issuers

The expanded exemptions provided by amended Regulation A, also known as "Regulation A+," are only available to companies organized and with their principal place of business in the United States or Canada.