Private Equity: Rules & Regulations

Who regulates the Private Equity markets?

In Canada – each province and territory has its own securities commission that regulate the securities industry in that province or territory.

 

What is the US JOBS Act?

 

The JOBS Act is the "Jumpstart our Business Startups Act"

 

The JOBS Act is a law that encouraged the growth of small businesses in the US by easing various securities regulations. It was signed into law by President Obama on April 5, 2012.

The JOBS act allows small businesses to accept investments from private individuals, or "crowdfunding" without making an Initial Public Offering ("IPO").

 

What is Title II?

 

Title II allows Accredited Investors to invest in Private Equity

 

In September 2013, the US Government and the SEC made significant changes to the 1934 Securities Act by enacting Title II of the US Jobs Act. Title II allows platforms like InvestX Financial to market private companies to accredited investors.

Before Title II, private companies could only raise money from "friends and family" or people that they had an existing relationship with. They could not advertise generally, which included the internet.

These changes are also happening in Canada and more than 20 additional countries globally, creating a massive disruption in the way capital is invested by retail investors.

 

What is Title III?

 

Title III allows Non-Accredited Investors to invest in Private Equity

It allows for any U.S. citizen to be able to invest in a private company (including over the internet), regardless of their income or net worth, although a number of specific conditions apply (ie. investment limits and distribution methods and terms).