SEC Sets Deadline of June 30 for Compliance with Crowdfunding Rules

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Thursday, June 10, 2021 / 03:43 PM / by Wole Obayomi / Header Image Credit: IoED

 

The Securities and Exchange Commission (SEC or "the Commission") recently announced a deadline of Wednesday, 30 June 2021 for compliance with the SEC Crowdfunding Rules ("the Rules").

 

The Rules, which took effect on 21 January 2021 ("the Effective Date"), mandate entities in the crowdfunding ecosystem (crowdfunding intermediaries, fundraisers, commodities investment platforms, etc.) to comply with the stated requirements within 90 days from the Effective Date, i.e. 21 April 2021. However, following the SEC's announcement, affected companies now have until 30 June 2021 to ensure full compliance. Failure to regularise their compliance status by the due date may result in regulatory sanctions, including ceasing of operations or being categorized as operating illegally.

 

Comments 

The SEC issued the Crowdfunding Rules to provide a formal regulatory and supervisory framework, including compliance requirements, scope of business operations, registration requirements, obligations of the operators, and penalties for non-compliance, for entities in the crowdfunding and commodity investment ecosystem.

 

The extension of the deadline for compliance by the SEC is a welcome development, and provides affected entities, which were unable to meet the 21 April 2021 deadline, another opportunity to regularise their compliance status with the Commission. Affected companies should take advantage of this extension to update their regulatory compliance status with the SEC in order to avoid unnecessary sanctions and business disruptions.

 

Credits

* This statement was first published in the Issue 6.5/ June 2021 Newsletter of KPMG of Thursday, June 10, 2021. For further enquiries, please contact the author, Wole Obayomi via ng-fmtaxenquiries@ng.kpmg.com

 

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