The meeting on October 23 will see submission of the proposal for the US crowdfunding equity laws.
This is what you can expect from this vote on the proposal:
The rules of the new law will be set for public commenting for 60-90 days.
The SEC staff then needs 30 days to summarize the findings, show them to the five SEC Commissioners who will have a chance to review them and set a meeting to vote on the proposed rules another 15 days later.
If it is voted into law it will be entered into the Federal Register, which will take a week or two, and then made into law 60 days later. Target time for this to become law is the first week of May 2014.
The alternative is that the public commenting will take 60 rather than 90 days. However, if the commissioners vote against the proposal or the law, then the process may have to start all over again. Finally, FINRA has to implement the rules that the SEC sets.
End of summer 2014 seems to be the earliest the law will be ready for practical use. It still is very exciting, and I am eager to see the proposed rules and report on them.
David Drake is an early-stage equity expert and the founder and chairman of LDJ Capital, a New York City private equity advisory firm, and The Soho Loft, a global event-driven financial media company helping firms and funds advertise for investors. He is running the Real Estate Investing and Leading Crowdfunding Conference in NYC on Nov 14, 2013. Listen to him speak together with Keynote Barry Sternlicht of Starwood Capital. Details of the event can be found at: https://thesoholoft-real-
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