UPDATE: (10/21/13) The SEC has not responded to reports that the Commissioners will meet on Wednesday, Oct. 23 to vote on the regulations under the Crowd Fund Act.
At the moment, the SEC website only says that there will be a closed Commission meeting on Thursday, Oct. 24 at 11:00 a.m. to review the institution and settlement of injunctive actions; institution and settlement of administrative proceedings; adjudicatory matters; amicus consideration; and other matters relating to enforcement proceedings. http://lnkd.in/bEwYb5f
UPDATE (10/18/13): Bloomberg just confirmed to me that the SEC will be voting on a full set of proposed rules to the Crowd Fund Act on Wednesday, Oct. 23. The article it published earlier today suggested that it might be voting only on the investment limitation portion of the statute. (2:15PM)
Bloomberg is reporting that the SEC will meet next Wednesday (10/23/13) to vote on not requiring crowd funding issuers to verify that their investors comply with individual investment limits.
Since no regulations for the Crowd Fund Act have yet been proposed at all, this begs the question as to whether we will see a regulatory regime promulgated in proposed or final form on that date. Those regs were required by law to be issued by January 1 of this year. Mary Jo White, Chairman of the Securities and Exchange Commission, has acknowledged that they are a priority of her administration.
Under the Crowd Fund Act, issuers using crowdfunding can raise no more than $5,000 a year from someone whose net worth is less than $100,000. Investors with a net worth greater than $100,000 could invest as much as 10 percent of their annual income or net worth, up to a maximum of $100,000 in one year.
Critics of the law have noted the near impossibility of verification and have urged the SEC to permit self-confirmation by the investor.