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Bill > S1063


US S1063

US S1063
HALOS Act of 2019 Helping Angels Lead Our Startups Act of 2019


summary

Introduced
04/08/2019
In Committee
04/08/2019
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

A bill to require the Securities and Exchange Commission to revise the rules of the Commission relating to general solicitation or general advertising, 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, which exempt certain securities offerings from registration requirements but prohibit general solicitation or advertising. Specifically, the bill states that this prohibition shall not apply to events sponsored by certain entities, including angel investor groups, where the issuer presents information about the type, amount, and intended use of the securities being offered, but does not provide investment recommendations or engage in negotiations. The bill also clarifies that attending such an event does not, by itself, establish a pre-existing relationship between the issuer and a potential investor for the purposes of another Regulation D exemption. The goal is to enable startups to more freely share information about their offerings with angel investors at these types of events.

Committee Categories

Housing and Urban Affairs

Sponsors (6)

Last Action

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (on 04/08/2019)

bill text


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