On March 25, 2015, the Securities and Exchange Commission (SEC) unanimously voted (5-0) to adopt new rules to update and expand  Regulation  Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term A, an exemption that has already been in place for smaller issuers of securities. The new rules, referred to as Regulation A+ or ‘IPO-Lite,’ are designed to allow smaller companies more options for accessing capital and also to provide more choices for investors. These rules have been mandated by Title IV of the Jumpstart Our Business Startups (JOBS) Act.

According to the old Regulation A framework, issuers were permitted to sell up to $5 million in securities during any 12-month period. Of that $5 million, only $1.5 million could be raised from current stockholders. However, due to regulatory requirements requiring that issuers file the offerings and pay fees in every state within which they were selling, few companies used this exemption. Many saw the relative fees and paperwork necessary to comply with these state “blue sky” regulations too burdensome for the amount raised to be worth the effort.

The new Regulation A+ rules will expand the current regulation into two tiers. Tier 1 will allow a company to sell up to $20 million in securities over any 12-month period, allocating up to $6 million of that total to current shareholders. Tier 2 will allow a company to sell up to $50 million in securities over any 12-month period, allocating up to $15 million of that total to current shareholders. Certain “bad actors” and other specific entities, such as investment companies, will be disqualified from raising via Regulation A+.

While Tier 1 issuers will still be required to comply with state “blue sky” registration requirements, the increase in the offering amount is intended to make this option more attractive than the current regulation. On the other hand, Tier 2 issuers will be allowed to pre-empt state securities regulation. However, Tier 2 companies will be required to include audited financial statements in their offering documents and will also be obliged to file annual, semiannual and current reports with the SEC.

Both Tier 1 and Tier 2 issuers will be mandated to undergo an SEC review, which could take several weeks, as well as filing a Form 1-A. Regulation A+ will allow for the use of general solicitation by issuers as well as the use of online  Crowdfunding  Crowdfunding Crowdfunding is defined as funding of a project via raising smaller denominations of money across a large body of number of people.New businesses that need access to more capital may also conduct crowdfunding. Generally, crowdfunding is performed through an online community, social media, or crowdfunding websites such as Kickstarter, GoFundMe, and RocketHub. Depending upon which jurisdiction an investor resides within will dictate the sort of restrictions that are applied to the crowdfunding process. This determines how much can be invested or which new business may receive the contributions. These restrictions are established to help shield investors from the high risk of losing their investment.Like any other investment, there is a risk of new businesses failing and are similar to those used in hedge fund trading. Why Crowdfunding is Becoming More PopularOne form of crowdfunding that’s becoming more popular would be equity-based crowdfunding, where new businesses can raise capital without losing control to venture capital investors. Crowdfunding has gradually become much more popular and mainstream over the past decade. Private businesses receive much larger amounts of liquidity that is generated by having several or tens of thousands of investors. More shareholders generally correlate to a larger market which in turn creates more liquidity which is what investors seek out when considering equity-based crowdfunding.Both entrepreneurs and investors can significantly benefit from crowdfunding while regulations are continuing to place an increasing role in protecting investor capital.The Securities and Exchange Commission (SEC) is the entity responsible for regulating equity-based crowdfunding in the United States although crowdfunding did not pick up traction until 2011 after President Obama signed the JOBS Act. Crowdfunding is defined as funding of a project via raising smaller denominations of money across a large body of number of people.New businesses that need access to more capital may also conduct crowdfunding. Generally, crowdfunding is performed through an online community, social media, or crowdfunding websites such as Kickstarter, GoFundMe, and RocketHub. Depending upon which jurisdiction an investor resides within will dictate the sort of restrictions that are applied to the crowdfunding process. This determines how much can be invested or which new business may receive the contributions. These restrictions are established to help shield investors from the high risk of losing their investment.Like any other investment, there is a risk of new businesses failing and are similar to those used in hedge fund trading. Why Crowdfunding is Becoming More PopularOne form of crowdfunding that’s becoming more popular would be equity-based crowdfunding, where new businesses can raise capital without losing control to venture capital investors. Crowdfunding has gradually become much more popular and mainstream over the past decade. Private businesses receive much larger amounts of liquidity that is generated by having several or tens of thousands of investors. More shareholders generally correlate to a larger market which in turn creates more liquidity which is what investors seek out when considering equity-based crowdfunding.Both entrepreneurs and investors can significantly benefit from crowdfunding while regulations are continuing to place an increasing role in protecting investor capital.The Securities and Exchange Commission (SEC) is the entity responsible for regulating equity-based crowdfunding in the United States although crowdfunding did not pick up traction until 2011 after President Obama signed the JOBS Act. Read this Term platforms for both tiers. Issuers will be able to accept an unlimited number of accredited and unaccredited investors. However, unaccredited investors will be limited to an investment of up to 10% of their annual income or net worth.

The new rules will allow for businesses to raise millions without going public too soon. The filing requirements and review from the SEC will enable businesses to grow while still providing proper safeguards and investor protections. It is expected that this will foster job creation and provide more opportunities to smaller and unaccredited investors. The new rules will become effective 60 days after publication in the Federal Register.