Asset Management Counsel Nathan Somogie Discusses SEC Exempt Offering Framework Proposals in ACA Insight
In a move that would ease access to capital, the SEC proposed rule amendments to its exempt offering framework that would, among other things, raise the offering limit under a number of existing regulations and could streamline the exempt offering process. An article in the March 9 issue of ACA Insight titled “SEC Exemption Proposal Would Raise Offering Limits and Streamline Process” quotes asset management counsel Nathan Somogie on the proposed rule changes.
In the piece, Nathan states that the proposed rule changes “continue what appears to be an ‘incremental’ approach to expanding and addressing gaps in the existing offering exemptions under the Securities Act, following up on the SEC’s proposed changes to the accredited investor definition in December 2019. This may not be the last word from the SEC on this topic, which appears to be near and dear to Chairman Clayton. In his remarks at the December 2019 open meeting when the changes to the accredited investor definition were proposed, Clayton indicated that there could be more to come in this space, including examining whether ‘appropriately structured funds can facilitate greater Main Street investor access to private investments.’ It’s still possible that we will see a proposal on registered fund access to private investments in the coming months.”