If you do not feel competent enough to perform Analysis 4(a)(2) or if you are unsure whether your offer is covered by the exception due to the complexity of your situation, you may submit to the SEC what is known as “Form D” to ensure that you are covered by 4(a)(2). To do this, you must first ensure compliance with one of the exceptions provided for in Regulation D (Rule 504, Rule 506) or Section 4(a)(5) of the Securities Act of 1933, by carefully analyzing each of them, but these exceptions are much clearer and offer a list of requirements to be met, to enjoy the benefits and protection of submitting Form D. In one situation, the requirements of these safe ports could be much easier to verify and rely on. Finally, it is worth analyzing the state laws in force to ensure that your offer also falls under an exemption from the registration requirement. Even if you are able to carry out such an analysis yourself, we recommend, if possible, that you hire a lawyer. An experienced professional will most likely be able to assess the situation from experience, while you will be able to remove it from your list and move on to more exciting projects. For more information on SAFE securities, see the SEC Investor Bulletin. To get the latest Investor Alerts and other important information from FINRA investors, log in to Investor News. Some issuers have offered a new type of collateral as part of some crowdfunding offerings – which they have called safe. The acronym stands for Simple Agreement for Future Equity. These securities carry risk and are very different from traditional common shares.
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