The SEC Office of Investor Education and Advocacy ("OIEA") issued an Investor Bulletin to "educate investors about a new investing opportunity in the form of securities-based crowdfunding." In the bulletin, the OIEA:
- specifies yearly crowdfunding investment limits determined by an investor's total net worth and annual income;
- provides instructions for making crowdfunding investments through broker-dealers or funding portals;
- details the disclosure and investor education requirements for issuers of crowdfunding offerings;
- explains the risks associated with crowdfunding investments;
- outlines the differences between being a crowdfunding investor and an investor in publicly listed companies; and
- lists additional resources for obtaining information about crowdfunding.
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.
