Regulation D Solution

Compliance Requirements for Issuers

• Understanding and Adhering to Exemptions: Issuers must fully understand the specific rules under Regulation D, such as Rule 504, Rule 506 (b), and Rule 506 (c). Failing to comply with these rules can lead to penalties, the loss of exemption status, or the need to retroactively register with the SEC. We develop an offer service which covers all popular cases out of the box.
• Filing Form D: Issuers are required to file Form D with the SEC within 15 days after the first sale of securities. Our administration panel ensures timely reminders and management to keep you compliant with this critical requirement.
• State Compliance: While Reg D offerings are exempt from federal registration, issuers must also comply with state securities laws. We have invested significant time and resources into developing our offering service and administration tool, designed to help mitigate these compliance risks and streamline the process for you.

Investor Limitations

• Accredited Investor Verification (Rule 506(c)): Issuers utilizing Regulation D, 506 (c) are permitted to engage in general solicitation but must take "reasonable steps" to verify the accreditation of all participating investors, a process that can be both complex and resource-intensive. Our thoughtfully designed compliance solution streamlines this verification, helping you avoid significant costs and operational burdens.

Investor Protections

• Protecting Non-Accredited Investors (Rule 506(b)): Under Regulation D, 506 (b), issuers can accept investments from a limited number of non-accredited investors. Our investment service handles all the regulatory complexities, allowing you to focus on scaling your business and driving growth.
• Ensuring Proper Risk Disclosure: Even when offering securities to Accredited Investor, issuers must clearly communicate all associated risks. Drawing on over 10 years of experience working with legal teams and successfully navigating numerous SEC reviews, we have developed a state-of-the-art investment process that integrates best-in-class security, a seamless user interface, and robust regulatory compliance to streamline your offering.

Investor Funds Protection

• Escrow for Fund Collection: Reg D requires Investor funds protection by holding them in escrow during the campaign. After years of collaboration with industry-leading partners and refining our RESTful APIs, we have developed a robust, secure offering service solution that ensures full compliance and protection of investor funds.
• Managing Escrow Logistics: Our platform is designed to maintain full functionality even during unforeseen events or user errors. By leveraging our escrow agent solution, we guarantee that funds are securely managed and processed, ensuring seamless operations even in challenging edge cases.

Data Protection

• Sensitive Investor Information: Protecting sensitive data in compliance with privacy laws is crucial. We are using trusted partners and proven over the years dataflow.
• Third-Party Involvement: Many Reg D offerings using third-party service providers, and issuers are still responsible for protecting investor data, even when handled by external providers. We constantly upgrading our system and proactively monitoring OWASP reports.
• Enhanced data protection process: Our platform adheres to the stringent security and identity verification standards outlined in NIST 800-63B, ensuring compliance with industry-leading protocols for secure digital interactions.

CyberSecurity Risks

• Increased Exposure to Cyber Attacks: Private offerings, especially those conducted through online platforms for investor relations or solicitation under Rule 506(c), are vulnerable to cyber threats. We continuously adapt to emerging risks and enhance our security pipelines to safeguard your offerings against cyberattacks.
• Vulnerability to Phishing and Fraud: Cybercriminals frequently target issuers and investors with sophisticated phishing schemes, fraudulent wire transfers, and other cyberattacks. Our platform is continuously updated to monitor emerging phishing techniques, ensuring your transactions and data remain secure.
• Compliance with Cybersecurity Regulations: Platform must also meet stringent cybersecurity regulations, security is a core feature that seamlessly integrated into our offering service and filer RESTFULL API, ensuring full compliance and data security.
• Enhanced DevSec process: Our platform is fully compliant with NIST SP 800-53, adhering to comprehensive security and privacy controls to ensure the highest standards of risk management and regulatory compliance.

Other Requirements

• Ongoing Reporting Obligations: While Reg D offerings are exempt from traditional reporting requirements, issuers must still maintain effective communication with investors and regulatory bodies. Our notification service ensures timely, targeted messages are delivered to the appropriate investor groups, streamlining compliance and enhancing investor relations.
• Resale Restrictions: Securities sold under Reg D often come with restrictions on resale. Issuers must ensure that investors understand these limitations.
• Investor Relations and Transparency: Issuers are required to maintain ongoing communication with investors, providing timely updates to ensure transparency and mitigate legal risks. Our administration panel, integrated with email service, empowers operations teams to respond swiftly to unforeseen events, ensuring consistent and compliant investor engagement.
• Dealing with Litigation Risks: Private offerings often carry the risk of investor litigation. Issuers need to have legal counsel in place to handle any disputes. Our investment process is thoughtfully designed to transparently highlight all potential risks, while presenting them in a manner that maintains investor confidence without appearing overly daunting.