Vote Smart's Synopsis:

Vote to pass a bill that reduces various securities regulations applicable to certain companies, brokers, and advisors, as well as authorizing more investors to invest in specified types of ventures.

Highlights:

• Reduces various securities regulations applicable to certain companies, brokers, and advisors, as well as authorizing more investors to invest in specified types of ventures (Div. A, Title I, Sec. 1101).

• Establishes an exemption to certain securities regulations for small offerings of securities, specifically that securities registration shall not be required for a sale of securities if the total amount sold by the issuer during the preceding 12-month period does not exceed $250,000 (Div. A, Title II, Sec. 1202).

• Authorizes certain issuers of securities regulate as emerging growth companies to continue operating under thefse regulations, including those to reduce disclosures for an additional period of time, and increases the limit of total annual gross revenues under which issuers qualify as emerging growth companies to $1.5 billion (Div. B, Title I, Sec. 2102).

• Authorizes more investment by raising the caps on the allowed capital and number of investors under which a fund may qualify as a venture capital fund which are exempt from certain regulations applicable to other investment firms, including those related to filings, audits, and restricted communications with investors (Div. A, Title III, Sec. 1301).

• Increases the caps from $10 million to $150 million in capital contributions and commitments and 250 to 600 allowed investors (Div. C, Title I, Sec. 3102).

• Expands who may be considered an accredited investor for purposes of participating in private offerings of securities and specifies certain unregistered securities may only be offered to accredited investors (Div. C, Title II, Sec. 3202).

Full Bill Text

Full Bill Text