SEC Approves New Crowdfunding Rules

On October 30, 2015, the SEC completed final regulations implementing the JOBS Act, which was passed in April, 2012. Calling this final step Regulation Crowdfunding, the SEC will now permit Internet offerings of debt or equity securities to both accredited and non-accredited investors without filing and clearing first with the SEC.  An issuer must make the offering only on a platform run by a registered broker-dealer or by a "funding portal".

The new Crowdfunding Regulation requires "funding portals" to register with the SEC and with FINRA. The Regulation takes effect six months after publication in the Federal Register to permit funding portals time to complete the registration process.