Grace Century, a private equity company based in the United Arab Emirates expresses “Concern” over US Crowdfunding Proposals.
Grace Century FZ LLC has spoken out regarding The SEC’s recent amendments to securities regulation. The amendments represent some of the most significant shifts in securities regulation policy for almost 80 years.
The new SEC amendment to the securities regulations will enable US-based companies & entrepreneurs who are seeking capital investment to promote the opportunity to invest in their company(s) to individuals in excess of $1M in liquid net worth, or with annual incomes over $200,000 – these individuals will be referred to as “accredited investors”. The marketing of the investment opportunity can take place via various media channels such as print, social media and email. These regulations will become part of the register within 2 months, after which this option will be available for the raising of capital by companies.
Scott Wolf, Grace Century CEO has expressed that, even if an individual earns at a particular income level, it does not follow that the same individual has the experience to make decisions on investment opportunities in the same way a professional investor would do. For crowdfunding enterprises which typically require an investment in the region of $1,000, there is often nothing to ensure that the opportunity is being handled by a bonafide, accredited investment professional, and if the solicitation is done anonymously online this makes the risk even greater.