On November 2, 2020, in an effort to harmonize and modernize the exempt offering framework under the Securities Act of 1933 (the Securities Act), the US Securities and Exchange Commission (SEC) adopted a final rule entitled “Facilitating Capital Formation and Expanding Investment Opportunities by Improving Access to Capital in Private Markets.”
In a new legal update on the final rule, Andrew Lom and Rachael Browndorf analyze the amendments and the SEC’s intention to greatly increase access to capital raising for issuers and capital investment for investors through private and other offerings that are exempt from registration under the Securities Act.
Readers also may want to view their legal update on the SEC’s recently expanded definition of “accredited investor” — US SEC adopts amendments to expand scope of accredited investor definition.