News

Regulation A+ - What Broker-Dealers Need to Know

May 04, 2017

A great deal has been written about the updated and expanded version of Regulation A, the rules for which went effective in 2015.  The new version of Regulation A, dubbed “Reg A+” provides an exemption for small offerings of up to $50 million worth of securities in any one year period.  Little, however, has been written about the requirements from the perspective of FINRA member firms that may act as selling agents or underwriters in Reg A+ offerings.  

Just to recap, Reg A+ offerings now consist of two classes of offerings: “Tier 1”—up to $20 million, including no more than $6 million by selling security holders; and “Tier 2”— up to $50 million, including no more than $15 million by selling security holders.   Reg A+ also allows for “testing the waters” and Tier 2 offerings made to “qualified purchasers,” which include accredited investors and non-accredited investors that meet certain requirements, will not require state blue sky registration.   

To read the full article, please visit the link http://htflawyers.com/00030703.pdf