New Film Financing Regulations Known as Reg A+ Passed, Stipulations To Be Met

With the SEC passing regulations pertaining to a streamlined securities process known as “Reg A+”, these measures are considered to change the very landscape, in terms of film financing.

Beginning June 19, investment offerings, which include films, will be made available to the public provided a few requirements are made. Here are a few of these stipulations that must be kept so as to be able to contribute:

#1: The offering should not exceed $50 million within a 12-month period.

#2: Investors cannot put down more than 10 percent of their monthly income or their net worth, not including their home.

#3: The company that is making the offering will have to complete a long document in a SEC-approved format and known as Form 1-A. Before any investors are accepted, it will have to be approved by the SEC.

#4: The individuals who are involved in the investment should not be found guilty by an administrative agency or court due to the violation of securities or other laws.

#5: The offering material must accurately put down all material facts.

#6: The issuer must employ a registered transfer agent so as to record ownership and transfers made by film’s investors.

#7: Promoters cannot sell their own interests directly in any issuer in excess of either $15 million or 30 percent of the offering.

#8: The issuer can advertise the offering using social media as well as general marketing materials while also being permitted to raise investments on a crowdfunding site.

#9: The investors are allowed to accept investments from all types of investors and not just accredited investors. There is no limit on the number of investors either.

#10: There is no need for the issuer to comply with state securities laws but must file audited financials with the Form 1-A while also filing follow-up reporting to the SEC.