Wednesday, November 19, 2014

Oregon Proposes Crowdfunding Rules

[This story previously appeared in Securities Regulation Daily.]

By Jay Fishman, J.D.

The Oregon Finance and Corporate Securities Division recently proposed crowdfunding rules to help small businesses raise capital. The “Oregon Intrastate Private Offering Rules” (OIPO) provide Oregon businesses with an exemption from registration of securities in order to facilitate investment by Oregon residents while still protecting investors from fraud.

Highlights from the proposed rulemaking include:

  • Capping the aggregate price of all OIPO securities at $250,000;
  • Capping the amount an issuer can receive from a single investor at $2,500;
  • Requiring the issuer to file a notice with the Oregon Department Director accompanied by a $200 fee; and
  • Requiring the issuer to use its own company website or a third party Internet platform to facilitate the securities offering.
Public hearing. A public hearing on the rule proposals will be held at 9:00 a.m. on December 3, 2014 at the Department of Consumer and Business Services, Finance and Corporate Securities, 350 Winter St. NE, Salem, Oregon, in Conference Room 260 (2nd Floor).

A summary of the exemption’s conditions is provided here.