On November 24, 2020, the SEC proposed amendments to Rule 701 under the Securities Act of 1933 that seek to modernize the requirements for the inclusion of company securities in worker-company compensation arrangements. This will help ensure that workers have the opportunity to share in the growth of the business. The revision, with investor protection at the forefront, provides an exemption from: 1) registration for securities issued by non-reporting issuers pursuant to compensatory arrangements, and; 2) Form S-8, the Securities Act registration statement for compensatory offerings by reporting issuers. The modifications are part the SEC’s continued efforts to review and improve rules to better align them with the economy and current employment practices. Continue reading "SEC Proposes Amendments to Modernize Framework..." »

The SEC voted on November 24, 2020, to propose rules that would permit an issuer provide equity compensation to certain “platform workers” who provide services available through the issuer’s technology-based platform or system. Under the proposal, such permission would be issued on a temporary basis and subject to percentage limits (no more than 15% of annual compensation), dollar limits (no more than $75,000 in three years) and other conditions.
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