Regulation A+ is the SEC’s proposed revision of the current Regulation A, which was mandated by the JOBS Act in 2012.
Some of the major proposed changes include:
- State law preemption for certain Regulation A+ offerings, meaning once the SEC qualifies an offering, it can be offered anywhere in the US.
- An increase in the maximum offering amount from $5 million to $50 million.
- Modernization of the filing and review process, including filing through the EDGAR website, a major change from the current system, which requires hand delivering 7 paper copies of a filing to the SEC.
Regulation A+ provides issuers with yet another option for crowdfunding securities offerings.
While the process of Regulation A+ requires a more in-depth SEC review process, the proposed exemption permits much more money to be raised — specifically with regard to when audited financials are first required ($500K for Regulation A Crowdfunding, $5 million for Regulation A+).
Additional Resource: SEC Exemptions Used by Fundrise