The Proposed Crowdfunding Rules for Non-Accredited Investors and the Potential Associated Costs for Small Issuers
Publication Date
4-24-2015
Document Type
Article
Organizational Units
Sturm College of Law
Keywords
Securities and Exchange Commission (SEC), Jumpstart Our Business Startups Act of 2012 (JOBS Act), § 227.201(t), Crowdfunding, Non-accredited investors, Small issuers, Crowdfund CPA, Generally Accepted Accounting Principles (GAAP)
Abstract
We are discussing possible rulemaking for equity crowdfunding under the JOBS Act. One of the overall issues with the Proposed Crowdfunding Rules before the Securities and Exchange Commission (“SEC”) is the potential cost to those small issuers who might seek to take advantage of raising money through this type of offering. For an issuer that plans to raise $100,000 or less, the requirement that the principal executive officer certifies the financial statements as true and correct does not create an added expense. While it is difficult to pinpoint the actual cost of a financial statement review or audit because each issuer, its business, and financial condition is unique, what is abundantly clear is that requiring an issuer to undertake a review or an audit under the Proposed Crowdfunding Rules could be quite cost prohibitive.
Publication Statement
Copyright is held by the author. User is responsible for all copyright compliance.
Rights Holder
Stacey L. Bowers
Language
English (eng)
Publication Title
The Race to the Bottom
Recommended Citation
Stacey L. Bowers, The Proposed Crowdfunding Rules for Non-Accredited Investors and the Potential Associated Costs for Small Issuers, Race to the Bottom (April 24, 2015), https://www.theracetothebottom.org/rttb/special-projects-segment-the-proposed-crowdfunding-rules-for.html.