According to its latest rulemaking agenda, the Securities and Exchange Commission (“SEC”) plans to issue a concept release on exempt offerings. The effort aims to generate feedback on ways the SEC could streamline the exempt offering process, which at the moment is pieced together by a complicated mix of disparate exemptions. SEC staff wants to review how to synchronize and simplify the disparate exemptive rules. William Hinman, the SEC’s Division of Corporation Finance director, said the concept release will be very broad and ask numerous questions concerning private placement exemptions.
Part of the broad concept release will include exploring “accredited investor” definition. The concept release will address criticisms that current accredited investor definition limits who can invest in general solicitation offerings via Rule 506 of Regulation D. Many have asked the SEC to expand the definition to cover the complexity of the investor, the investment amount, or other factors outside of the investor’s wealth.
The concept release is expected to be published in the next several months.