Sometimes it seems the financial system in the United States is playing catch up with other industries. The finance industry desperately needs to modernize between old traditions and practices, slow bureaucratic lawmaking, and an unwillingness to adapt to modern technology. The incredible accessibility that 21st-century technology has afforded the world brings with it changes in literally every corner of every industry. For investing, this means embracing same-day settlements on trades. Let us examine how trade settlements work and why same-day settlements have become a hot topic.
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As a new presidential administration enters the fold and as the confirmation of a new Head of the SEC takes place, let us look at the outgoing SEC head Jay Clayton’s accomplishments. After serving from 2017 to 2020, Clayton’s SEC accomplishments are countless; we will focus on the many important things that occurred during his tenure, mainly focusing on Rule 506(c) changes and how that has changed our industry.
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When viewing the words accredited investor and sophisticated investor side-by-side, the average person may think these are the same terms or hold practically the same meaning. Financial professionals often use these terms interchangeably to their detriment. Understanding the difference between an accredited investor and a sophisticated investor is paramount to avoiding serious consequences. Unfortunately, a simple slip up of vocabulary, in this case, can lead to worse situations than a simple misunderstanding. This blog will describe why it is essential to understand the difference between an accredited investor and a sophisticated investor.
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Real estate syndication just got more comfortable with the passage of new accredited investor definitions by the SEC on December 8th, 2020. For years, the SEC has danced around the idea of adding new definitions, thereby potentially increasing the available pool of accredited investors for issuers of Rule 506(c) offerings. After many open forums and discussions, the SEC added definitions that industry leaders have lobbied for many years. Let us discuss how these new changes will benefit real estate issuers and investors alike.
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2020 was a year like no other in our lifetime. Sadly, the COVID-19 pandemic has wreaked havoc all across the globe, bringing shutdowns, unemployment, and other tremendous challenges that fell particularly hard on small businesses and families. Financially speaking, The Federal Reserve has taken some serious action to combat the virus’s heavy economic toll, as have governments worldwide. Now, as the year concludes, yet another $900 billion USD stimulus package is in the works in the U.S. Let us take a closer look at this whirlwind of a year.
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Let's face it: venture capitalism is not for the faint of heart. Instead, it's so cutthroat that most venture capital funds fail. That's why the more successful venture capitalists tend to focus on allying themselves with the best firms and investing in the entrepreneurial diamonds in the rough. To that end, we’ve compiled five simple, straightforward tips for up-and-coming venture capitalists. Of course, venture capital is much more nuanced than essential advice can provide; however, think of these as a solid bedrock of everyday things to keep in mind.
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In part one of this series, we discussed the SEC’s newly adopted amendments that fill in some important gaps in existing private placement laws while simplifying and improving consistency to improve transparency for issuers and investors alike. These amendments will take effect on January 2021, which is just around the corner. We reviewed changes to Regulation A and Regulation Crowdfunding, as well as non-exclusive safe harbors from integration. Now, let us examine additional key changes to Rule 504 of Regulation D, “Test-the-Waters” and “Demo Day” communications, eligibility requirements, and improvements to other SEC registration exemptions.
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It’s common knowledge that growing small businesses and startups do not always have the crucial resources at their disposal to participate in the traditional securities registration process. Therefore, they tend to choose from among several registration exemptions offered by the Securities and Exchange Commission (SEC). On November 2, 2020, the SEC adopted amendments that simplify existing laws, enhance their consistency, and fill in gaps. The amendments take effect 60 days after their date of publication in the Federal Register.
Let’s take a look at a few of the highlights: changes to Regulation A, changes to Regulation Crowdfunding, and non-exclusive safe harbors from integration.
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