Takeaways from SEC Release that Harmonizes Exempt Securities Offering Framework

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.

Here are three important takeaways in three minutes from our CEO and Ketsal Principal, Zachary Fallon.

For your convenience, an updated summary chart of the offering exemptions is included here.