Exempt Securities Offerings & Auditor Responsibilities

The use of securities offerings allowed under Securities and Exchange Commission (SEC) registration exemptions continues to expand rapidly. Today, multiple options for raising capital exist for smaller businesses without filing a registration statement under the Securities Act of 1933. Examples include private placements (Rule 506(b)), general solicitations of accredited investors (Rule 506(c)), limited offerings not exceeding certain dollar amounts (Rule 504, Regulation A), crowdfunding (Regulation Crowdfunding), and intrastate offering exemptions (Section 3(a)(11) of the Securities Act and Rules 147 and