SEC and CFTC Look to Harmonize Bad Actor Approach Pertaining to Reg D and Reg A+

Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC) have published a joint letter pertaining to the treatment of bad actors and disqualification affiliated with Regulation D (Reg D) and Regulation A (Reg A+). Reg D 506c and Reg A+ are exemptions that may be utilized by online capital formation platforms.

The letter states that the agencies will establish a pilot program in an attempt to “formalize the practice and agreement”  relating to orders that implicate bad actor disqualification.

The letter is signed by both Chairs of their respective agencies. The Chairmen of the SEC and CFTC expect to use reasonable efforts to “formalize and memorialize” the coordination of their staffs with respect to CFTC orders that may implicate the SEC Disqualification Rules.

The letter is available below.




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