,i #aad? ,,congress #b;d ,session ,h4 ,r4 #dhee ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,m>* #bc1 #bjaf ,mr4 ,mc,henry introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to am5d provisions 9 ! securities laws relat+ to regulation cr[dfund+ to raise ! doll> am\nt limit & to cl>ify c]ta9 requirem5ts & exclusions = fund+ portals e/abli%$ by su* ,act4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,fix ,cr[dfund+ ,act4 #b4 ,qualification = cr[dfund+ exemption 7#a7 ,increase 9 limit ( am\nt sold 9 reliance on ! cr[dfund+ exemption ,section #d7;a77#f77;,a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;d7#f77;,a77 is am5d$ by /rik+ #a1jjj1jjj & ins]t+ #e1jjj1jjj4 7#b7 ,cl>ification ( transaction caps ,section #d7;a77#f77;,b7 ( su* ,act is am5d$-- 7,a7 9 clause 7i71 by ins]t+ ! great] ( aft] #e p]c5t (2 & 7,b7 9 clause 7ii71 by ins]t+ ! great] ( aft] #aj p]c5t (4 #c4 ,cl>ification ( c]ta9 fund+ portal requirem5ts & exclusions = ,regulation ,cr[dfund+ 7a7 ,exclusion ( issu]s f fund+ portals 7#a7 ,cl>ification ( c]ta9 exclusion requirem5ts ,section #cjb ( ! ,jump/>t ,our ,bus9ess ,/>tups ,act is am5d$ by add+ at ! end ! foll[+3 7e7 ,cl>ification ( c]ta9 exclusion requirem5ts = fund+ portals ,"u ! rules issu$ pursuant to subsection 7d71 a fund+ portal %all h a reasonable basis = disqualify+ an issu] f (f]+ securities ?r\gh su* fund+ portal pursuant to section #d7;a77#f7 ( ! ,securities ,act ( #aicc if ! fund+ portal1 ?r\gh a backgr\nd *eck ( ! issu] or o!r means1 has f\nd t su* issu]1 9 connection ) ! (f]1 pur*ase1 or sale ( securities1 has kn[+ly-- 7#a7 made any untrue /atem5t ( a mat]ial fact or to omit to /ate a mat]ial fact necess>y 9 ord] to make ! /atem5ts made1 9 ! light ( ! circum/ances "u :i* !y 7 made1 n mislead+2 or 7#b7 engag$ 9 any act1 practice1 or c\rse ( bus9ess :i* op]ates or w\ld op]ate z a fraud or deceit ^u any p]son4 4 7#b7 ,cl>ification ( o!r obligations to r$uce ! risk ( fraud ,section #d;,a7a77#e7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;d-#a7;a77#e77 is am5d$ to read z foll[s3 7#e7 z a m9imum to r$uce ! risk ( fraud ) respect to su* transactions obta9 a backgr\nd & securities en=cem5t regulatory hi/ory *eck on ea* (fic]1 director1 & p]son hold+ m ?an #bj p]c5t ( ! out/&+ equity ( e issu] ^: securities are (f]$ by su* p]son2 4 7#c7 ,cl>ification ( liability ( fund+ portals = mat]ial mis/atem5ts & omissions ,section #d;,a7c7 ( su* ,act 7#ae ,u4,s4,c4 #gg;d-#a7;c77 is am5d$ by add+ ! end ! foll[+3 7#d7 ,liability ( fund+ portals ,= purposes ( ?is subsection1 an int]m$i>y %all n be consid]$ an issu] unless1 9 connection ) ! (f] or sale ( a security1 x kn[+ly-- 7,a7 made any untrue /atem5t ( a mat]ial fact or omitt$ to /ate a mat]ial fact necess>y 9 ord] to make ! /atem5ts made1 9 ! light ( ! circum/ances "u :i* !y 7 made1 n mislead+2 or 7,b7 engag$ 9 any act1 practice1 or c\rse ( bus9ess :i* op]ates or w\ld op]ate z a fraud or deceit ^u any p]son4 4 7b7 ,exemption f regi/ration ,section #ab7;g77#f7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghl7g77#f77 is am5d$-- 7#a7 by /rik+ ,! ,commission & all t foll[s ?r\gh securities & ins]t+ ,securities2 & 7#b7 by ins]t+ %all be exempt aft] ,securities ,act ( #aicc4 7c7 ,all[+ s+le-,purpose funds 7#a7 ,am5dm5t to ! ,securities ,act ( #aicc ,section #d;,a7f7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;d-#a7;f77 is am5d$-- 7,a7 by /rik+ p>agraph 7#b72 & 7,b7 by r$esignat+ p>agraph 7#c7 z p>agraph 7#b7 & 9 su* p>agraph1 by ins]t+ p>agraphs 7#a7 to 7#ad7 ( aft] section #c7;b7 or4 7#b7 ,am5dm5t to ! ,inve/m5t ,company ,act ( #aidj ,section #c7;c7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c7;c77 is am5d$ by add+ at ! end ! foll[+3 7#ae7 any issu] t holds1 = ! purpose ( mak+ an (f]+ pursuant to section #d7;a77#f7 ( ! ,securities ,act ( #aicc & ! rules issu$ pursuant to su* section1 ! securities ( n m ?an "o issu] eligible to (f] securities pursuant to su* section & su* rules4 4 7#c7 ,application ( rules ,s+le-purpose funds t are exclud$ f ! def9ition ( inve/m5t company "u p>agraph 7#ae7 ( section #c7;c7 ( ! ,inve/m5t ,company ,act 7#ae ,u4,s4,c4 #hj;a-#c7;c77-- 7,a7 %all be all[$ to sell & (f] = sale securities "u section #d7;a77#f7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;d7a77#f77 "u ! rules adopt$ on ,octob] #cj1 #bjae1 pursuant to title ,,iii ( ! ,,jobs ,act 7,public ,law #aab-ajf72 & 7,b7 %all be consid]$ v5ture capital funds = purposes ( section #bge4bjc7l7-#a ( title #ag1 ,code ( ,f$]al ,regulations4 7d7 ,solicitation ( int]e/ ,section #d;,a ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;d-#a7 is fur!r am5d$-- 7#a7 by r$esignat+ subsections 7f7 7z am5d$ by subsection 7c77#a771 7g71 & 7h7 z subsections 7g71 7h71 & 7i71 respectively2 & 7#b7 by ins]t+ aft] subsection 7e7 ! foll[+3 7f7 ,solicitation ( int]e/ 7#a7 ,9 g5]al ,at any "t prior to ! fil+ ( in=mation ) ! ,commission & ! comm5cem5t ( an (f]+ made 9 reliance on section #d7;a77#f71 an issu] may solicit non-b9d+ indications ( int]e/ f pot5tial inve/ors 9 a prospective (f]+ us+ ! same means & pursuant to ! same regulations 7o!r ?an ! fil+ ( in=mation ) ! ,commission7 z if conduct+ an (f]+ pursuant to su* section if-- 7,a7 no inve/or funds are accept$ by su* issu]2 & 7,b7 any mat]ial *ange 9 ! in=mation provid$ to pot5tial inve/ors dur+ ! actual (f]+ pursuant to su* section f ! in=mation provid$ to pot5tial inve/ors dur+ su* solicitation ( int]e/ are highlight$ to pot5tial inve/ors 9 ! in=mation fil$ ) ! ,commission4 7#b7 ,/atus ,su* solicitation ( int]e/ %all n be consid]$ an (f] or sale ( securities "u ?is ,act or ! ,securities ,ex*ange ,act ( #aicd1 reg>dless ( :e!r or n ! issu] actually conducts an (f]+ pursuant to su* section #d7;a77#f74 4 7e7 ,grace p]iod ,consi/5t ) ! effective date ( ! f9al rules on regulation cr[dfund+ adopt$ by ! ,securities & ,ex*ange ,commission on ,octob] #cj1 #bjae1 pursuant to title ,,iii ( ! ,,jobs ,act 7,public ,law #aab-ajf71 fund+ portals e/abli%$ "u su* ,act %all make a good fai? ef=t to comply ) all su* rules4 ,not)/&+ su* effective date1 no en=cem5t action may be br\ght aga9/ a fund+ portal be=e ,may #af1 #bjba4