Photo by David Vives on Unsplash
On March 15, 2021, the final rule for Regulation Crowdfunding amendments became effective. The SEC rule, named "Facilitating Capital Formation and Expanding Investment Opportunities by Improving Access to Capital in Private Markets", was adopted on November 2, 2020. The rule includes amendments to various rules and requirements, including Regulation Crowdfunding. Here are some of the Regulation Crowdfunding changes now in effect:
- Maximum Offering Amount of $5 Million
- Investment Limits (accredited investors are no longer subject to investment limits and the calculation method for the investment limits for non-accredited investors changed to allow them to rely on the greater of their annual income or net worth)
- Advertising Rules
- Testing the Waters
- Bad Actor Disqualification
- Special Purpose Vehicles
The final rule can be accessed in the Federal Register.