SEC Sets Deadline of June 30 for Compliance with Crowdfunding Rules

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Thursday, June 10, 2021 / 03:43 PM / by Wole Obayomi /
Header Image Credit: IoED

 

The Securities and Exchange Commission (SEC or “the
Commission”) recently announced a deadline of Wednesday, 30 June 2021 for
compliance with the SEC Crowdfunding Rules (“the Rules”).

 

The Rules, which took effect on 21 January 2021 (“the
Effective Date”), mandate entities in the crowdfunding ecosystem (crowdfunding
intermediaries, fundraisers, commodities investment platforms, etc.) to comply
with the stated requirements within 90 days from the Effective Date, i.e. 21
April 2021. However, following the SEC’s announcement, affected companies now
have until 30 June 2021 to ensure full compliance. Failure to regularise their
compliance status by the due date may result in regulatory sanctions, including
ceasing of operations or being categorized as operating illegally.

 

Comments 

The SEC issued the Crowdfunding Rules to provide a
formal regulatory and supervisory framework, including compliance requirements,
scope of business operations, registration requirements, obligations of the
operators, and penalties for non-compliance, for entities in the crowdfunding
and commodity investment ecosystem.

 

The extension of the deadline for compliance by the
SEC is a welcome development, and provides affected entities, which were unable
to meet the 21 April 2021 deadline, another opportunity to regularise their
compliance status with the Commission. Affected companies should take
advantage of this extension to update their regulatory compliance status with
the SEC in order to avoid unnecessary sanctions and business disruptions.

 

Credits

* This
statement was first published in the Issue 6.5/ June 2021 Newsletter of KPMG of
Thursday, June 10, 2021. 
For further enquiries, please contact the author, Wole Obayomi via ng-fmtaxenquiries@ng.kpmg.com

 

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