After a floor debate during which lawmakers on both sides of the aisle traded dueling press releases, the U.S. House of Representatives voted 325-89 in favor of the Helping Angels Lead Our Startups (HALOS) Act, on April 27, 2016. Read Rep. Hensarling’s Press Release here and Rep. Waters’ here. We covered in detail the substantive portions of the HALOS Act last month.
In summary, the HALOS Act directs the SEC to revise Rule 502(c) of Regulation D to exempt certain categories of information disseminated at sales events (“demo days”) hosted by groups such as colleges, non-profits, and “angel investor groups.” The bill defines angel investor groups as groups composed of accredited investors interested in investing personal capital in early-stage companies that hold regular meetings, have defined processes for making investment decisions, and are not affiliated with brokers, dealers, or investment advisors.
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