On November 1, 2020, the U.S. Securities and Exchange Commission issued a nearly 400 page release detailing important changes to its exempt securities offering framework that aim to promote capital formation while preserving or enhancing important investor protections.
There is a lot to digest in the amended rules that generally:
- in one broadly applicable rule, provide greater clarity around an issuer’s ability to transition from one exemption to another;
- increase the offering limits for Regulation A, Regulation Crowdfunding, and Rule 504 offerings, and revise certain individual investment limits; and
- add clear and consistent rules governing offering-related communications.
For your convenience, an updated summary chart of the offering exemptions is included here.