Regulatory Alerts2018-07-24 | 2018-15730Added
Exempt Offerings Pursuant to Compensatory Arrangements
The Securities and Exchange Commission adopted an amendment to Rule 701 under the Securities Act of 1933 to implement a mandate from the Economic Growth, Regulatory Relief, and Consumer Protection Act. The rule increases the aggregate sales price threshold for required additional disclosures to investors from $5 million to $10 million for securities issued by non-reporting companies pursuant to compensatory arrangements. This change reduces regulatory burdens and compliance costs for affected issuers while maintaining investor protections for offerings exceeding the new limit.
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