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Securities Registration: SEC Announces Updated Exemption

On March 25, 2015, the Securities and Exchange Commission adopted “Regulation A+,” a set of new rules updating and expanding the SEC’s existing Regulation A, designed to facilitate smaller companies’ access to capital and provide investors with more investment choices.

Under federal and state securities laws, primarily the Securities Act of 1933, a company that wants to raise capital by selling securities must either register the securities sales with the SEC or rely on an exemption from registration. Full SEC registration can be time-consuming and very expensive. One exemption from registration is provided under the SEC’s Regulation A, which exempts from registration qualifying securities offerings of up to $5 million. More…