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SEC Requests Comments on Overhaul of Private Securities Offering Exemptions

June 24, 2019 | Last week, the Securities and Exchange Commission published a concept release and requested public comment on ways to overhaul and streamline the myriad private offering exemptions from registration that exist under the current securities laws and regulations. The exemptions have been enacted and added onto over a period of more than 85 years, and the concept release notes that “market participants have conveyed concerns about the complexity of the exempt offering framework.” The SEC stated in the concept release “we . . . believe that issuers and investors could benefit from a framework that is more consistent and addresses gaps and complexities.”

In our opinion, this is overdue and a needed opportunity. Technology and the manner in which information is conveyed and disclosed have changed so dramatically in the past few decades that investors and the market need a more efficient structure to facilitate capital formation while also protecting investors.

The public comment period will run 90 days following publication of the concept release in the Federal Register. We intend to submit comments, so please feel free to contact us with your thoughts or observations.

For more information, please contact Geoff Morgan or Jessica Fairchild.

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