Yesterday the Nevada Secretary of State posted a media release regarding new regulations that went into effect regarding public solicitations for investors. The article warns that it could open the floodgate to a wave of securities fraud and that investors should educate themselves of the new rule- Regulation D Rule 506(c) of the Securities Act.
In April 2012 Congress passed the Jumpstart Our Business Startups (JOBS) Act, which changed the way that this rule allows offerings to be sold. According to the article private placement offerings of securities, such as stocks, bonds and other instruments are exempt from SEC registration requirements. Furthermore the state of Nevada does not review them for verification of information or level of risk.
Additionally it states that under this new rule companies are allowed to publicly solicit investors and advertise the sale of securities without registering the offering with either the SEC or any state if certain requirements are met. These investments may be sold via television commercials, newspaper ads, internet sales and cold calls.
“This rule change provides a new solicitation platform that is another avenue for swindlers to scam investors, so I urge investors to perform due diligence and thoroughly check the offerings before investing,” said Secretary Miller.
Previously such offerings were only made known through investment professionals or word of mouth. As a precaution to protect investors from fraud, they should fully understand the following:
• These offerings often involve companies with a limited history.
• There may not have been a regulatory background check of the sellers, managers or officers of the company issuing the investment.
• They often promise higher rates of return- and come with higher risk.
• These securities are generally illiquid, which means you may have a limited ability to get out of the investment and may hold it indefinitely.
• You may be offered less information than a public offering.
• No regulator has confirmed that the risk disclosure or information about the company is adequate.
Regulation D Rule 506 investments, if sold via advertisements or general solicitation, may only be sold to accredited investors. An accredited investor is:
• A natural person must have a net worth , exclusive of your primary residence, of more than $1 million, or
• Have had an income over $200,000 individually, or $300,000 with your spouse, in each of the last tow years, and expect to earn the same amount this year.
For a complete summary of the proposed regulations that went into effect 9/23/13 go to http://www.sec.gov/rules/proposed/2013/33-9416.pdf.
Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com. At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.
Showing posts with label Nevada news. Show all posts
Showing posts with label Nevada news. Show all posts
Tuesday, September 24, 2013
Friday, February 3, 2012
Sandoval seeks repeal of 654 regulations - News - ReviewJournal.com
Sandoval seeks repeal of 654 regulations - News - ReviewJournal.com
Gov. Brian Sandoval on Thursday recommended the repeal of 654 Nevada regulations that he said are either unneeded or a drag on economic growth.
Among them: a rule requiring labels on toilets in manufactured buildings advising of maximum water use per flush. The state Manufactured Housing Division concluded that the regulation is duplicative and unnecessary.
Another recommendation would abolish a requirement that all driver training schools have a physical location in the state. With the growth of Internet-based schools, officials say, mandating a brick-and-mortar site to do business "constitutes an unnecessary burden with little or no increased consumer protection," the governor's office said in a statement.
Of the hundreds of rules targeted for repeal, 137 involve the Department of Business and Industry, 120 fall under the Department of Motor Vehicles, and 95 are under the Department of Taxation.
Continue reading
Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com.At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.
Gov. Brian Sandoval on Thursday recommended the repeal of 654 Nevada regulations that he said are either unneeded or a drag on economic growth.
Among them: a rule requiring labels on toilets in manufactured buildings advising of maximum water use per flush. The state Manufactured Housing Division concluded that the regulation is duplicative and unnecessary.
Another recommendation would abolish a requirement that all driver training schools have a physical location in the state. With the growth of Internet-based schools, officials say, mandating a brick-and-mortar site to do business "constitutes an unnecessary burden with little or no increased consumer protection," the governor's office said in a statement.
Of the hundreds of rules targeted for repeal, 137 involve the Department of Business and Industry, 120 fall under the Department of Motor Vehicles, and 95 are under the Department of Taxation.
Continue reading
Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com.At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.
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