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SEC issues investor bulletin on crowdfunding

  • SEC (US Securities and Exchange Commission) Image

Feb 17, 2016

The SEC’s Office of Investor Education and Advocacy has issued an investor bulletin on the Commission’s recently adopted rules on crowdfunding, which will become effective on May 16, 2016.

The bulletin educates investors on how to participate in crowdfunding investments and addresses:

  • Criteria for investing in crowdfunding (total amount of investment is limited on the basis of the investor’s net worth and annual income).
  • How to calculate net worth.
  • Where an investor can invest in crowdfunding offerings (only available through broker-dealer or funding portals).
  • Risks involved in crowdfunding investments and the importance of understanding these risks.
  • Difference between a crowdfunding investor and an investor in a publicly listed company.

For more information, see the investor bulletin on the SEC’s Web site.

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