SEC Adopts Rules to Facilitate Capital Raises, Provides More Opportunity to IRA Investors says NuView IRA

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The newly adopted SEC rules give more businesses the ability to raise capital, which in turn will provide more investment options in the private securities space for both individual and IRA investors, a market that alone represents $7.4 billion.

The Securities and Exchange Commission, in a press release on March 25th, 2015, adopted the final rules for small businesses raising capital that will allow individual and IRA investors the opportunity to access more investment choices.

“These new rules provide an effective, workable path to raising capital that also provides strong investor protections,” said SEC Chair Mary Jo White in the government press release (http://www.sec.gov/news/pressrelease/2015-49.html#.VRL5w_nF-Sp ). “It is important for the Commission to continue to look for ways that our rules can facilitate capital-raising by smaller companies.”

As the new rules update and expand Regulation A as part of the Jumpstart Our Business Startups (JOBS) Act of 2012 that allowed solicitation of investors into capital raises for private securities. The rules adoption gives more businesses the ability to raise capital, which in turn will provide more investment options in the private securities space.

“The new rules, which enables smaller companies to offer and sell up to $50 million of private securities, will provide Issuers with more access to capital from IRA investors, who may not have previously had the opportunity,” said Jason DeBono, vice president of NuView IRA.

According to research by the Investment Company Institute’s fourth quarter report from 2014 (http://www.ici.org/research/stats/retirement/ret_14_q4 ), the IRA market has seen more than a 50% growth over the past decade with $7.4 billion in IRAs including self-directed IRAs which allows for investments into private securities.

“These private offerings will likely need a third-party administrator that specializes in private assets within IRAs,” said DeBono. “We expect a significant increase in this type of offering as most traditional IRA firms do not hold non-publicly traded investments in IRAs.”

NuView IRA serves as a passive administrator that provides custody of alternative assets. NuView is not a fiduciary, and as such it does not provide investment advice nor does it sell investments. Founded in 2003, NuView IRA, along with its affiliates, holds nearly $1 billion in assets through thousands of accounts nationwide.

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Lauren Keys
NuView IRA
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