The North American Securities Administrators Association (NASAA) and the U.S. Securities and Exchange Commission (SEC) have signed an information-sharing agreement to facilitate intrastate crowdfunding offerings as new rules take effect.
The deal is intended to aid regulatory oversight to ensure that new crowdfunding exemptions are enabling small businesses to gain access to capital and to guard against fraud.
“This agreement will strengthen collaboration among state and federal securities regulators to help expand small business investment opportunities while also protecting investors. Ongoing dialogue is essential to carry out our responsibilities,” says Mike Rothman, president of NASAA and Minnesota’s Commissioner of Commerce, in a statement.
“The agreement not only builds on an already productive relationship between the SEC and state regulators, it also offers additional insights and protections as we help companies grow and create jobs while providing new opportunities to investors,” adds Michael Piwowar, acting chairman of the SEC, in a statement.
Under the new rules, companies will have more flexibility to engage in crowdfunding deals in multiple U.S. jurisdictions. Amendments to enable regional offerings went into effect in January and rules to provide more flexibility for intrastate crowdfunding offerings will go into effect in April, the regulators note.