Follow us on
Difitek
  • News
  • What We Offer
  • Contact Us
  • Visit our Site

Important New Update for Securities Law in the US

7/21/2016

 
Picture
The US House of Representatives passed a new bill on securities law, the “National Securities Exchange Regulatory Parity Act of 2016” (H.R. 5421) , on Tuesday 12th of July, just a week after successfully passing other two bills related to investing, the “Supporting America's Innovators Act” and the “Fix Crowdfunding Act”.

Introduced by the sponsor of the bill Rep. Royce on 9th of June 2016, it passed last week the House by a voice vote, while it passed the Financial Services Committee on June 15th, by a vote of 47-12. The bill amends the section 18, of the Securities Act of 1933, eliminating specific references to national securities exchanges - the New York Stock Exchange (NYSE), the American Stock Exchange and the NASDAQ - and providing a “blue sky” exemption for securities listed on any national securities exchange registered with the Securities and Exchange Commission (SEC). In this way it will be increased the number of possible listing venues, increasing the possibility for companies to go public to sustain and accelerate their grow.

The  Rep. Royce explained that well saying that "The SEC’s interpretation of the law has created a two-tiered playing field by giving this 'blue sky' exemption only to these three exchanges which existed in 1996. It was not the intention of Congress to create such a carve-out. This bill, the National Securities Exchange Regulatory Parity Act, rights this wrong. It provides clarity around the exemption, which will now apply to all securities listed on a national exchange regulated by the [Securities and Exchange Commission], with Commission-approved listing standards. Why is this exemption important? You could ask anyone from Massachusetts who tried to invest in a little company called Apple during its IPO. State regulators banned the stock for being 'too risky'."

We have officially entered Summer but the US government remains very active to update and improve the current regulation, making us even more positive and bold for the months ahead. Like it or not, the finance industry is going through a radical change, and there is now plenty of space for financial companies that are able to see the opportunities arising from this change.


Image credit:  By Lawrence Jackson (whitehouse.gov) [Public domain], via Wikimedia Commons.


Alessandro Ravanetti Picture
About the author - Alessandro Ravanetti

Alessandro is Co-founder & CMO of Crowd Valley. He has worked in the fintech industry, with marketplace investing and lending, since 2011. Has built and managed digital companies with distributed teams and international partners, and gained experience with both startups and large corporations, having worked with British Telecom, Bloomberg and the Grow VC Group.  
Alessandro grew up in Italy, where he graduated with a B.A. in Economics at University of Parma, before to obtain a M.S. in Finance at Regent’s University London. 
He studied and worked in many different cities, including Munich, Geneva, London, Barcelona and Valencia. Genuinely passionate about financial technology and innovation, he loves to spend his spare time traveling and discovering new cultures.  You can find him on Twitter at @aleravanetti. ​





Comments are closed.

    RSS Feed

       

    Categories

    All
    All Sectors
    Americas
    API
    Asia
    Australasia
    Clean Energy
    Crowd Valley
    CTO Blog
    Difitek
    Equity Investment
    Europe
    Events
    Expert Analysis
    Fintech
    Global
    Interview
    Lending
    Local Funding Network
    Marketing
    Market Watch
    Oceania
    Platform Updates
    Presentations
    Press Release
    Real Estate
    Regulations
    Russia
    Social Capital
    Webinar

Back to Difitek website


Copyright 2018 Crowd Valley Inc. 
All Rights Reserved.

Crowd Valley does not engage in the offer, sale or transfer of securities and securities may not be offered, sold or transferred via this website. Securities may not be offered or sold in the United States absent (i) registration under the U.S. Securities Act of 1933, as amended (the Securities Act) or (ii) an available exemption from registration under the Securities Act. Please consult legal counsel in the appropriate jurisdiction before offering, selling or buying securities as registration under the Securities Act or similar state legislation may be required.

Please note that the provision of the information on this website does not create and is not intended to create a relationship between Crowd Valley Inc. and any other person. You are not and should not regard yourself as being a client or customer of Crowd Valley Inc. and must not expect Crowd Valley Inc. to have any duties or responsibilities to you, act for you or your clients, or be responsible for providing protections afforded to customers or yourselves or be responsible for advising you in any respect.