Category Archives: Financial

Financial

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

New York State: Banks and Insurance Providers – New Cyber-Security Standards

Effective March 1, 2017, all banks and entities providing insurance in New York State will be required to meet new, minimum cyber-security standards, and certify compliance each February 15 after internal risk assessments are performed.  While some larger entities may already meet these standards, many will not.  Entities which also engage in business in other…
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Defined Terms? Fuhgeddaboudit!

In September 2016, the Oxford English Dictionary (“OED”) added the word “fuhgeddaboudit”, among others, as part of its quarterly update.  The term is defined as: “In representations of regional speech (associated especially with New York and New Jersey): ‘forget about it’, used to indicate that a suggested scenario is unlikely or undesirable.”  However, anyone who…
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