Blog

Privacy – Summary of InfoSec Policy Issues

While many businesses believe that they have adequate procedures in place to protect their own confidential information or that of their clients/customers, most do not.  Rather, they merely have a section in their employee handbook on confidentiality, and maybe require their employees to sign confidentiality or non-disclosure agreements.  Generally, such provisions are not sufficient to…
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General Data Protection Regulation

Starting next year, there will be new and stringent data protection laws in place in the European Union (“EU”) and the European Economic Area (“EEA”) – laws which may have a material impact on business located in the United States.  Effective as of May 25, 2018, the new General Data Protection Regulation (“GDPR”) will apply…
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Accredited Investors

Many people thinking or reading about startups and crowdfunding come across the phrase “accredited investors,” but it’s not always explained.

The Securities Act of 1933 regulated public offerings after the 1929 stock market crash scared, well, everyone. However, the definition of accredited investor appears in Rule 501 of Reg D  originally adopted in 1982. It provides a safe harbor exemption from registration. “Safe harbor” means that if an offering complies with the specified requirements in a rule, the SEC deems it to not be a public offering and exempt from registration.

Registration, briefly, means the filing of a vast amount of information with the SEC that has to be provided to prospective investors. It must include all information required by the SEC and any information needed to make the materials not misleading. This is essentially “going public” and is an expensive and time-consuming process.

Rick Colosimo