WASHINGTON, DC--(Marketwired - Oct 30, 2015) - Today the Securities and Exchange Commission voted 3-1 in favor of implementing Title III, Regulation Crowdfunding of the Jumpstart Our Business Startups Act (JOBS Act), permitting un-accredited investors to privately invest in companies via the Internet. This ruling will give these investors access to the world of equity and debt crowdfunding, and will have a major impact on investors and small businesses around the country.
Title III is positioned to spark major changes in the American economy, provide unprecedented opportunities for businesses and increase the number of potential startup investors in the U.S. from 3.5 million to 233.7 million.
"We are thankful that the SEC has released rules for Title III and launched a new capital market for small businesses that will create jobs and grow the economy," said Chris Tyrell, Founder and CEO of the private placement platform, Offerboard Group. "This part of the industry has been an industry-in-waiting, and I know many platform operators -- and prospective platform operators -- are eager to get started helping companies raise capital under the new regulations."
CFIRA was established just after the signing of the JOBS Act and is dedicated to working alongside the SEC and Congress to help establish rules and develop industry standards and best practices. CFIRA is committed to working with regulators and legislators to continue to advance initiatives that will improve capital formation for smaller companies and make the investment process as transparent, efficient, and accessible as possible.
"This is a timely move from the SEC," said Kim Wales, JOBS Act and securities crowdfunding expert and founder of Wales Capital, a boutique management consulting focused on business strategy and regulatory compliance. "But now we must ensure that an ecosystem is in place to support the industry, especially, due diligence and transparency."
"We applaud the Commission's moving forward with the Title III rulings," said Co-Chairman, D.J. Paul, the founder of DJP&Co., a financial services consulting firm specializing in investment crowdfunding regulation, implementation and business development. "CFIRA looks forward to continuing to work with the SEC and the crowdfunding industry as the rules are implemented in the coming months and years."
About CFIRA
Crowdfund Intermediary Regulatory Advocates, or CFIRA, was established following the signing of the Jumpstart Our Business Startups (JOBS) Act. CFIRA is an organization formed by the crowdfunding industry's leading platforms and experts. CFIRA works with the Securities & Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and other affected governmental and quasi-governmental entities to help establish industry standards and best practices. For more information, visit www.CFIRA.org.