The SEC has proposed new rules on crowdfunding that would, among other things, prohibit funding portals from offering investment advice or making recommendations, and holding or possessing investor funds.
The Securities and Exchange Commission (SEC) has proposed crowdfunding rules as part of implementing Title III of the Jumpstart Our Business Startups (JOBS) Act. Title III—or, more accurately, the “Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure Act of 2012”—amends the Securities Act of 1933 by adding a crowdfunding exemption for issues of up to $1 million. In addition, the total amount sold to any investor in the year leading up to the ...
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