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SEC Adopts JOBS Act Amendments

THE SECURITIES AND EXCHANGE COMMISSION (“SEC”) ANNOUNCED IT HAS ADOPTED AMENDMENTS TO INCREASE THE AMOUNT OF MONEY COMPANIES CAN RAISE THROUGH CROWDFUNDING TO ADJUST FOR INFLATION. IT HAS ALSO APPROVED AMENDMENTS THAT ADJUST FOR INFLATION A THRESHOLD USED TO DETERMINE ELIGIBILITY FOR BENEFITS OFFERED TO EMERGING GROWTH COMPANIES (“EGC’S”) UNDER THE JUMPSTART OUR BUSINESS STARTUPS (“JOBS”) ACT.

The SEC is required to make inflation adjustments to certain JOBS Act rules at least once every five years. The latest thresholds were approved March 31.

Inflation-Adjusted Amounts in Rule 100 of Regulation Crowdfunding (Offering Maximum and Investment Limits)

  • Maximum aggregate amount an issuer can sell under Regulation Crowdfunding in a 12 month period: increased from $1,000,000 to $1,070,000
  • Threshold for assessing investor’s annual income or net worth to determine investment limits- increased from $100,000 to $107,000
  • Lower threshold of Regulation Crowdfunding securities permitted to be sold to an investor if annual income or net worth is less than $107,000- increased from $2,000 to $2,200
  • Maximum amount that can be sold to an investor under Regulation Crowdfunding in a 12-month period- increased from $100,000 to $107,000

Inflation-Adjusted Amounts in Rule 201(t) of Regulation Crowdfunding (Financial Statement Requirements)

  • Rule 201(t)(1)- increased from $100,000 to $107,000
  • Rule 201(t)(2)- increased from $500,000 to $535,000
  • Rule 201(t)(3)- increased from $1,000,000 to $1,070,000

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Author Bio

Leila Shaver is the Founder of My RIA Lawyer, a law firm that provides compliance and legal consulting for financial institutions. With extensive experience as a securities attorney and compliance expert, she has served as Chief Compliance Officer and General Counsel to RIAs, BDs, and TAMPs with billions in assets under management.

Leila understands the challenges RIAs face and is committed to helping RIAs streamline their processes, mitigate risks, and ensure compliance with regulatory requirements. She received her Juris Doctor from Atlanta’s John Marshall Law School and is a West Georgia Young Lawyers’ Association member. Leila has received numerous accolades for her work, including the Carroll County Bar Association’s Outstanding Young Lawyer Award in 2017.

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