The SEC and the North American Securities Administrators Association ("NASAA") provided guidance for market participants on the application of federal and state securities laws to opportunity zone investments.
In order to help participants in the opportunity zone program understand the implications of compliance for qualified opportunity funds, the SEC and NASAA included in their summary:
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the purpose and criteria for designating qualified opportunity zones;
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when, under federal and state securities laws, interests in qualified opportunity funds ("QOFs") would be considered "securities";
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the process for registering securities offerings with the SEC and/or state securities regulators, as well as possible exemptions from QOF registration; and
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the potential application of broker-dealer and investment company regulations to QOF sales and products.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.