• SEC Amends Rule 701 of the Securities Act of 1933 and Publishes Concept Release
  • August 29, 2018 | Author: Gregory Pun
  • Law Firm: Withers Bergman LLP - Greenwich Office
  • On July 18, 2018, the SEC amended Rule 701 of the Securities Act of 1933 in order to increase the threshold for requiring additional disclosure by non-reporting companies to investors up to $10 million. The threshold for such disclosures had previously been $5 million. On July 18, the SEC also issued a Concept Release soliciting comment on the modernization of the use of Rule 701 and Form S-8. The Concept Release sought comment on how to reduce burdens associated with registration on Form S-8 as well as whether Rule 701 should be modified in light of modern trends, such as new types of equity compensation and new forms of contractual relationships between companies and individuals.