On November 2, 2020, the SEC voted to adopt amendments proposed in March 2020 that harmonize and modernize the exempt offering framework (referred to as the Amendments). As with several other recent votes to adopt rule proposals, the SEC Commissioners split their vote, with two Commissioners voting against the Amendments. Among other things, the Amendments modernize the framework relating to the integration of securities offering occurring in close proximity to one another. The Amendments include a new, simpler approach to integration consisting of four non-exclusive safe harbors guided by several overriding principles. This simpler approach is set forth in a new Rule 152, which replaces current Rule 152 and Rule 155. The provisions of Rule 152 will not have the effect of avoiding integration for any transaction or series of transactions that are part of a scheme to evade the Securities Act registration requirements. Instead of embedded integration provisions, Regulation D, Regulation A, Regulation Crowdfunding, and Rules 147 and 147A now contain references to new Rule 152.
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Originally published in REVERSEinquiries: Volume 3, Issue
9.
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