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KPMG experts react to SEC’s June 30 compliance deadline with crowdfunding rules

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SEC releases rules to permit crypto trading in Nigeria

KPMG experts reacts to SEC’s June 30 compliance deadline with crowdfunding rules

The Securities and Exchange Commission (SEC) recently announced a deadline of Wednesday, 30 June 2021 for compliance with the SEC Crowdfunding Rules.

The rules, which took effect on 21 January 2021, mandate entities in the crowdfunding ecosystem (crowdfunding intermediaries, fundraisers, commodities investment platforms, etc.) to comply with the stated requirements within 90 days from the effective date, that is 21 April 2021.

However, following the SEC’s announcement, affected companies now have until 30 June 2021 to ensure full compliance.

Failure to regularise their compliance status by the due date may result in regulatory sanctions, including ceasing of operations or being categorized as operating illegally.

Comments by KPMG experts

The SEC issued the Crowdfunding Rules to provide a formal regulatory and supervisory framework, including compliance requirements, scope of business operations, registration requirements, obligations of the operators, and penalties for non-compliance, for entities in the crowdfunding and commodity investment ecosystem.

The extension of the deadline for compliance by the SEC is a welcome development, and provides affected entities, which were unable to meet the 21 April 2021 deadline, another opportunity to regularise their compliance status with the Commission.

Affected companies should take advantage of this extension to update their regulatory compliance status with the SEC in order to avoid unnecessary sanctions and business disruptions.

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