summary
Introduced
03/27/2019
03/27/2019
In Committee
03/27/2019
03/27/2019
Crossed Over
Passed
Dead
12/31/2020
12/31/2020
Introduced Session
116th Congress
Bill Summary
To require the Securities and Exchange Commission to revise rules relating to general solicitation or general advertising to allow for presentations or other communication made by or on behalf of an issuer at certain events, and for other purposes. This bill directs the Securities and Exchange Commission (SEC) to revise Regulation D, which exempts certain offerings from SEC registration requirements but prohibits general solicitation or general advertising with respect to such offerings. Specifically, this prohibition shall not apply to events with specified kinds of sponsors—including "angel investor groups" unconnected to broker-dealers or investment advisers—where presentations or communications are made by or on behalf of an issuer, if the advertising does not refer to any specific offering of securities by the issuer; the sponsor does not provide investment recommendation or advice to attendees, engage in investment negotiations with attendees, charge certain fees, or receive certain compensation; and no specific information regarding a securities offering is communicated beyond the type and amount of securities being offered, the amount of securities already subscribed for, and the intended use of proceeds from the offering.
AI Summary
This bill, the Helping Angels Lead Our Startups (HALOS) Act of 2019, directs the Securities and Exchange Commission (SEC) to revise its Regulation D rules to allow issuers (businesses that are not in bankruptcy, receivership, or investment companies) to make presentations or communications at certain events, such as those sponsored by the government, colleges/universities, nonprofits, angel investor groups, or venture forums. This exemption from the general prohibition on "general solicitation or general advertising" would apply as long as the event sponsor does not provide investment recommendations, engage in negotiations, charge certain fees, or receive compensation that would require broker-dealer or investment adviser registration. The bill also specifies that attendance at these events alone does not establish a pre-existing relationship for purposes of the private placement exemption under Rule 506(b).
Committee Categories
Business and Industry
Sponsors (4)
Last Action
Referred to the House Committee on Financial Services. (on 03/27/2019)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location | Created |
|---|---|---|
| State Bill Page | https://www.congress.gov/bill/116th-congress/house-bill/1909/all-info | 03/28/2019 |
| BillText | https://www.congress.gov/116/bills/hr1909/BILLS-116hr1909ih.pdf | 04/11/2019 |
| Bill | https://www.congress.gov/116/bills/hr1909/BILLS-116hr1909ih.pdf.pdf | 04/11/2019 |
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