Submitted by lushenejj on
Startups and other private companies offering securities to investors in multiple states may be able to lower costs and reduce paperwork required to notify state securities regulators. On Dec. 15, 2014, the North American Securities Administrators Association (NASAA) launched a new multi-state filing system enabling private issuers to submit Form D for Regulation D, Rule 506 offerings and pay related fees to participating state securities regulators online in a streamlined manner.
The new system, called the Electronic Filing Depository (EFD) may be able to save private issuers time and money by streamlining the state notification and fee payment process for private placements of securities by reducing attorney/paralegal time and mailing fees spent to research state notification requirements, draft letters and file notifications with various states’ securities regulators. The EFD is accessible to the public. According to NASAA at the time of this legal alert, all states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands have adopted and are capable of accepting filings using EFD except for Arizona, California, Connecticut, Delaware, Florida, Louisiana, Massachusetts, Michigan, Minnesota, New York, North Carolina and Oregon. While the EFD is currently limited to Form D filings for Rule 506 offerings, NASAA expects that the system will be expanded to accept other state securities registration and notice filing materials in the near future. (National Law Review)