Entries tagged “private offerings”
New Regulation Crowdfunding Rules Come into Effect
im-report March 17, 2021
In 2012, the Jumpstart Our Business Startups (“JOBS”) Act introduced Regulation Crowdfunding (“Reg CF”) to the regulatory framework governing exempt offerings, enabling eligible companies to offer and sell securities through crowdfunding. The JOBS Act was created to ease securities regulations and to encourage the private funding of U.S. small businesses by reducing costs associated with…
Taxation of Carried Interests is Reignited by Recent Congressional Bill
im-report Debbie A. Klis · February 17, 2021
Representatives Bill Pascrell (D-NJ), Andy Levin (D-MI) and Katie Porter (D-CA) released H.R. 1068[1] on February 16, 2021, known as the “Carried Interest Fairness Act” (the “Act”). The Carried Interest Fairness Act would tax carried interest compensation at ordinary income tax rates and treating it as wage income subject to employment taxes. Capital gains taxation…
2020 in the Rear-View Mirror: Key Takeaways Applicable to Private Investment Funds and Private Offerings
im-report Debbie A. Klis · January 8, 2021
In 2020, the Securities and Exchange Commission (SEC) renewed its focus on private investment funds while easing limits on private placements generally. As the SEC observes, private fundraising easily surpasses public fundraising including with respect to private investment funds. The following discussion recaps a few of the key developments affecting private offerings, private funds and…
EB-5 Regional Center Program Extended Through June 30, 2021
im-report Debbie A. Klis · December 22, 2020
The EB-5 Regional Center Program will be extended through June 30, 2021 as part of the Consolidated Appropriations Act, 2021. This legislation does not address the EB-5 per-country-caps limit or other major reform issues that had been raised just a short time ago in Congress but separates EB-5 Regional Center Program reauthorization from future federal…
ISDA IBOR Fallbacks Supplement and Protocol: What You Need to Know
im-report Robin Powers · November 19, 2020
I. Introduction In 2017, the UK’s Financial Conduct Authority (“FCA”) announced that it will not require the calculation and publication of interbank offered rates (“IBORS”) beyond 2021. The absence of a guaranteed IBOR after 2021 has triggered one of the largest and intricate challenges that financial markets have confronted to date. Trillions of dollars of…
Let the Fundraising Begin: SEC Harmonizes and Improves its Exempt Offering Framework
im-report Debbie A. Klis · November 5, 2020
On November 2, 2020, the Securities and Exchange Commission (“SEC”) voted to amend and simplify its rules governing private-offering exemptions under the Securities Act of 1933 (the “Securities Act”) to promote capital formation (the “Amendments”).[1] The SEC release included discussion of their intent to remain true to the key components of their mission, namely investor…
SEC Expands Pool of Eligible Private Offering Participants
im-report Debbie A. Klis · September 16, 2020
The Securities and Exchange Commission’s (SEC) recent expansion of the definition of “accredited investor” in the final rule (Final Rule) issued on August 26, 2020, allows people with professional knowledge, experience or certifications to qualify as accredited investors, which is a highly welcome step that is creating quite a buzz!! The Final Rule is particularly…
Not a Moment Too Soon: SEC Proposals to Ease Capital Raising Rules
im-report Debbie A. Klis · May 12, 2020
On March 4, 2020, the Securities and Exchange Commission (“SEC”) issued proposed amendments (the “Proposals”) in Release No. 33-10763, “Facilitating Capital Formation and Expanding Investment Opportunities by Improving Access to Capital in Private Markets ” (the “Release”) affecting certain exempt offering rules to reduce impediments to fundraising under the Securities and Exchange Act of 1933 (“Securities…