Private Placement Improvement Act of 2014 - Directs the Securities and Exchange Commission (SEC) to revise the filing requirements of Regulation D to require an issuer that offers or sells securities in reliance upon a certain exemption from registration (for limited offers and sales without regard to the dollar amount of the offering [Rule 506]) to file, no earlier than the date of first sale of such securities, a single notice of sales containing the information required by Form D for each new offering of securities.
Prohibits the SEC from: (1) requiring the issuer to file any notice of sales containing the information required by Form D except for this single notice; (2) conditioning the availability of the Rule 506 exemption upon the filing of a Form D or similar report; or (3) requiring issuers to submit written general solicitation materials in connection with a limited offering subject to Rule 506, except when it requests such materials pursuant to specified authority.
Directs the SEC to revise a specified rule, regarding a Rule 506 offering of a private fund, to characterize as an accredited investor a "knowledgeable employee" of that private fund or the fund's investment adviser.
Prohibits the SEC from extending to private funds the requirements governing investment company sales literature.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4570 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4570
To direct the Securities and Exchange Commission to revise Regulation D
relating to exemptions from registration requirements for certain sales
of securities.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 6, 2014
Mr. Garrett (for himself and Mr. McHenry) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To direct the Securities and Exchange Commission to revise Regulation D
relating to exemptions from registration requirements for certain sales
of securities.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Private Placement Improvement Act of
2014''.
SEC. 2. REVISIONS TO SEC REGULATION D.
Not later than 45 days following the date of the enactment of this
Act, the Securities and Exchange Commission shall revise Regulation D
(17 C.F.R. 501 et seq.) in accordance with the following:
(1) The Commission shall revise Form D filing requirements
to require an issuer offering or selling securities in reliance
on an exemption provided under Rule 506 of Regulation D to file
with the Commission a single notice of sales containing the
information required by Form D for each new offering of
securities no earlier than the date of first sale of securities
in the offering. The Commission shall not require such an
issuer to file any notice of sales containing the information
required by Form D except for the single notice described in
the previous sentence.
(2) The Commission shall make the information contained in
each Form D filing available to the securities commission (or
any agency or office performing like functions) of each State
and territory of the United States and the District of
Columbia.
(3) The Commission shall not condition the availability of
any exemption for an issuer under Rule 506 of Regulation D (17
C.F.R. 230.506) on the issuer's or any other person's filing
with the Commission of a Form D or any similar report.
(4) The Commission shall not require issuers to submit
written general solicitation materials to the Commission in
connection with a Rule 506(c) offering, except when the
Commission requests such materials pursuant to the Commission's
authority under section 8A or section 20 of the Securities Act
of 1933 (15 U.S.C. 77h-1 or 77t) or section 9, 10(b), 21A, 21B,
or 21C of the Securities Exchange Act of 1934 (15 U.S.C. 78i,
78j(b), 78u-1, 78u-2, or 78u-3).
(5) The Commission shall not extend the requirements
contained in Rule 156 to private funds.
(6) The Commission shall revise Rule 501(a) of Regulation D
to provide that a person who is a ``knowledgeable employee'' of
a private fund or the fund's investment adviser, as defined in
Rule 3c-5(a)(4) (17 C.F.R. 270.3c-5(a)(4)), shall be an
accredited investor for purposes of a Rule 506 offering of a
private fund with respect to which the person is a
knowledgeable employee.
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Hearings Held by the Subcommittee on Capital Markets and Government Sponsored Enterprises Prior to Introduction and Referral.
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported by the Yeas and Nays: 31 - 28.
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