On May 7, 2012, the SEC Division of Trading and Markets issued
FAQs about crowdfunding intermediaries in the
JOBS Act. The FAQs provide guidance on the implementation of the
crowdfunding intermediary provisions of Title III of the JOBS Act.
Highlights of the FAQs are set forth below.
Crowdfunding Intermediary
The JOBS Act creates a new exemption for offerings of
"crowdfunded" securities. Specifically, the JOBS Act
exempts companies from the requirements of Section 5 of the
Securities Act when they offer and sell up to $1 million in
securities, provided that individual investments do not exceed
certain thresholds and the company satisfies other conditions in
the JOBS Act, which will require rulemaking by the SEC within 270
days of the enactment of the JOBS Act on April 5. The SEC Division
of Corporation Finance has reminded issuers that any offers or
sales of securities purporting to rely on the crowdfunding
exemption would be unlawful under the federal securities
