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SEC Adopts Final Rules to Allow Exchange Act Reporting Companies to Use Regulation A

This week, The Securities and Exchange Commission adopted final rules to allow reporting companies to rely on the Regulation A exemption from registration for their securities offerings.

“Regulation A provides an exemption from registration under the Securities Act for offerings of securities up to $50 million in a 12-month period,” said Chairman Jay Clayton. “The amended rules will provide reporting companies additional flexibility when raising capital.”

The amendments, mandated by the Economic Growth, Regulatory Relief, and Consumer Protection Act, will enable companies that are subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 to use Regulation A. The amendments also permit such reporting companies to meet their Regulation A ongoing reporting obligations through their Exchange Act reports.

Learn more HERE.