Read the Latest Regarding Dodd-Frank Financial Reform Act from Ryley Carlock:
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Dodd-Frank Wall Street Reform and Consumer Protection Act: Net Worth of Accredited Investors |
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SEC Rulemaking Update
On January 25, 2011, the Securities and Exchange Commission ("SEC") issued a proposed rule regarding the net worth standard for accredited investors.
Background
The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") enacted on July 21, 2010 contains provisions that impact private offers and sales of securities. The Dodd-Frank Act changes the net worth standard for accredited investors by requiring that the value of an individual's primary residence be excluded from net worth. The standards for determining who is an accredited investor are critical to eligibility for private and limited offerings that are exempt from registration. Under current SEC Rule 501 of Regulation D, an accredited investor includes any person whose individual net worth, or joint net worth with that person's spouse exceeds $1,000,000.
Proposed Rule...
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SEC Proposes Whistleblower Provisions of Dodd-Frank |
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The United States Securities and Exchange Commission has proposed rules to implement the whistleblower provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank"). Those provisions - sometimes referred to as "bounty" provisions - generally require the SEC to pay a reward to whistleblowers who voluntarily provide the SEC with original information about a violation of the securities laws that leads to the successful enforcement of a federal court or administrative action brought by the SEC. While the SEC previously limited awards to no more than 10% of civil penalties collected in insider trading cases, Dodd-Frank provides for substantially larger awards ranging from 10% to 30% of collected monetary sanctions that exceed $1 million. The precise amount of the award in a given case would be left to the discretion of the SEC.
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