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Investor Marketing and Regulation A Compliance

Marketing a Regulation A+ campaign requires a great deal of compliance with various regulations and guidelines mandated by the Security and Exchange Commission (SEC). At Public Yield Capital, our legal counsel keeps up-to-date with securities and advertising regulations to assure compliance for equity crowdfunding (Regulation A+, CF, etc,) and publicly-listed companies.

These regulations cover a wide range of topics including which individuals can participate in the offering, the maximum limit a company can raise, in addition to important advertising and solicitation guidelines that must be followed when executing an investor marketing strategy. PYC is a trusted partner with years of experience marketing and communicating in the capital markets. We help develop investor marketing strategies for Regulation A+ offerings, while ensuring compliance with all relevant SEC and CSA guidelines. 

 

Marketing to Investors: Principles of Compliance

As an entrepreneur, raising capital in a highly regulated and competitive environment can be difficult to navigate. Working closely with your compliance team, PYC develops content and investor marketing strategies that strictly adhere to our established compliance principles across all funnels. Eliminating the potential risk of violating SEC regulations while raising capital from investors. 

 

Advertising Educational and Fact-based Information

When generating investor marketing content, PYC takes an educational approach to ensure all released information is based on facts, rather than being promotional content. Following the SEC amended Marketing Rule, all Regulation A+ offering advertisements follow general prohibitions. This entails ensuring all material statements are made based on facts and are not misleading under any circumstances. Additionally, PYC prioritizes presenting transparency and fairness to investors when discussing potential benefits, risks, and many other compliance-friendly guidelines related to the investment. Through delivering non-promotional content and educating investors about the company, PYC is able to enable investors to make an informed judgment regarding the investment. Ultimately, maximizing investors leads through capturing investors that truly believe in the long-term success of your company, rather than being in it for the short-term gain.                      

 

Approval Process with the Compliance Team

The regulatory environment in the equity crowdfunding landscape is changing constantly. Thus, a compliance team is required to avoid facing legal violations of the SEC. Our legal advisors lie at the heart of our strategic investor marketing tactics, as our internal processes require approval from the advisors before decisions are implemented throughout the campaign. As well as ensuring compliance, the PYC Legal Team plays a crucial role in achieving capital raise objectives, making accountable decisions, while also protecting investors and the valued clients we serve. 

 

Expertise Supporting Capital Raise in Legally Complex Sectors

The legal guidelines surrounding Regulation A+ are not the only areas of the raise that require regulatory compliance. Businesses specializing in certain industries must also adhere to industry-specific laws to avoid committing any violations. These regulations may involve obtaining a permit or licence, federal and state/provincial/territorial laws, and many other legalities surrounding the specific industry. Thus, it is crucial to stay up to date with ongoing regulatory filings and consult with legal counsel prior to launching a Regulation A+ campaign. Public Yield Capital has years of experience supporting companies in legally complex sectors such as healthcare, cannabis, psychedelics, and many other verticals.

 

Staying Up to Date with the Latest SEC Regulations

As the regulatory environment of equity crowdfunding is constantly evolving, Public Yield Capital conducts periodic research and review to remain up to date with all SEC regulatory filings and proposed amendments. One notable reform under the Investment Advisers Act is the recent introduction of the Marketing Rule, which merges what was previously the Advertising and Cash Solicitation Rule. The Marketing Rule was adopted to recognize the advancement of technology-based communication and the evolving financial markets, and efficiently regulate marketing communications. There are many other regulations under the SEC, and it is crucial to stay up to date with such changes to keep legal risk at tolerance.

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