HALOS Act

Bill: 115-s-588
Sponsor: full_name: Sen. Murphy, Christopher [D-CT]
Introduced: 2017-03-09
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures

Business investment and capital

Financial services and investments

Marketing and advertising

Securities

Securities and Exchange Commission (SEC)
Latest action: action_date: 2018-06-26
text: Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 115-354.

Summaries:
action_date: 2017-03-09
action_desc: Introduced in Senate
text: <p><b>Helping Angels Lead Our Startups Act or the HALOS Act</b></p> <p>This bill directs the Securities and Exchange Commission (SEC) to revise Regulation D, which exempts certain offerings from SEC registration requirements but prohibits general solicitation or general advertising with respect to such offerings. Specifically, this prohibition shall not apply to events with specified kinds of sponsors, including "angel investor groups" unconnected to broker-dealers or investment advisers, where presentations or communications are made by or on behalf of an issuer but:</p> <ul> <li>the advertising does not refer to any specific offering of securities by the issuer; </li> <li>the sponsor does not provide investment recommendation or advice to attendees, engage in investment negotiations with attendees, charge certain fees, or receive certain compensation; and </li> <li>no specific information regarding a securities offering is communicated beyond&nbsp;the type and amount of securities being offered, the amount of securities already subscribed for, and the intended use of proceeds from the offering.</li></ul>

tv_txt: II 115th CONGRESS 1st Session S. 588 IN THE SENATE OF THE UNITED STATES March 9, 2017 Mr. Murphy (for himself, Mr. Thune , Mr. Schatz , Mr. Toomey , and Ms. Heitkamp ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To require the Securities and Exchange Commission to clarify what constitutes a general solicitation under the Federal securities laws, and for other purposes.

1. Short title This Act may be cited as the Helping Angels Lead Our Startups Act or the HALOS Act . 2. Definition In this Act, the term angel investor group means a group that— (1) is composed of accredited investors interested in investing in personal capital in early-stage companies; (2) holds regular meetings; (3) with respect to either the individual investors that constitute the group or the group as a whole, has defined processes and procedures for making investment decisions; and (4) is not associated with a broker, a dealer, or an investment adviser. 3. Clarification of general solicitation (a) In general Not later than 180 days after the date of enactment of this Act, the Securities and Exchange Commission shall amend sections 230.500 through 230.508 of title 17, Code of Federal Regulations, so that the prohibition against general solicitation and general advertising under section 230.502(c) of title 17, Code of Federal Regulations, shall not apply with respect to a presentation or another form of communication that is made— (1) by or on behalf of an issuer; and (2) at an event— (A) that is sponsored by— (i) the United States; (ii) a State; (iii) a political subdivision of a State; (iv) an agency or public instrumentality of an entity described in clauses (i) through (iii); (v) a college, university, or other institution of higher learning; (vi) a nonprofit organization; (vii) an angel investor group; (viii) a venture forum, venture capital association, or trade association; or (ix) any other group or person that the Commission may determine, by rule; (B) where no advertising for the event references any specific offering of securities by the issuer; (C) the sponsor of which does not— (i) make investment recommendations or provide investment advice to the attendees of the event; (ii) engage in an active role with respect to investment negotiations between the issuer and any investors attending the event; (iii) charge attendees of the event any fees other than administrative fees; and (iv) receive compensation with respect to the event that would require the sponsor to register as— (I) a broker or a dealer under the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq.); or (II) an investment adviser under the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–1 et seq.); and (D) where no specific information regarding an offering of securities by the issuer is communicated or distributed by or on behalf of the issuer other than— (i) that the issuer is— (I) in the process of offering securities; or (II) planning to offer securities; (ii) the type and amount of securities being offered; (iii) the amount of securities being offered that have been subscribed for, as of the date of the event; and (iv) the intended use of any proceeds from the offering. (b) Rule of construction Subsection (a)— (1) shall be construed to require the Securities and Exchange Commission to amend sections 230.500 through 230.508 of title 17, Code of Federal Regulations, with respect to presentations and communications; and (2) may not be construed to require the Securities and Exchange Commission to amend sections 230.500 through 230.508 of title 17, Code of Federal Regulations, with respect to purchases or sales.