HALOS Act of 2023

1/4/2024, 8:56 PM

Helping Angels Lead Our Startups Act of 2023 or the HALOS Act of 2023

This bill directs the Securities and Exchange Commission (SEC) to revise Regulation D, which exempts certain securities offerings from SEC registration requirements but prohibits general solicitation or general advertising with respect to such offerings. Under the bill, 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, if

  • the advertising does not refer to any specific offering of securities by the issuer;
  • 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
  • no specific information regarding a securities offering is communicated beyond the type and amount of securities being offered, the amount of securities already subscribed for, and the intended use of proceeds from the offering.
In addition, the SEC is prohibited from requiring additional filings for a general solicitation or general advertising of a Regulation D security.
Congress
118
Number
HR - 1553
Introduced on
2023-03-10
# Amendments
0
Sponsors
+5
Cosponsors
+5

Variations and Revisions

12/12/2023
Text
PDF
XML

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Helping Angels Lead Our Startups Act of 2023 or the HALOS Act of 2023

This bill directs the Securities and Exchange Commission (SEC) to revise Regulation D, which exempts certain securities offerings from SEC registration requirements but prohibits general solicitation or general advertising with respect to such offerings. Under the bill, 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, if

  • the advertising does not refer to any specific offering of securities by the issuer;
  • 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
  • no specific information regarding a securities offering is communicated beyond the type and amount of securities being offered, the amount of securities already subscribed for, and the intended use of proceeds from the offering.
In addition, the SEC is prohibited from requiring additional filings for a general solicitation or general advertising of a Regulation D security.
Alternative Names
Official Title as IntroducedTo require the Securities and Exchange Commission to revise rules relating to general solicitation or general advertising to allow for presentations or other communication made by or on behalf of an issuer at certain events, and for other purposes.
Policy Areas
Finance and Financial Sector
Potential Impact
Administrative law and regulatory procedures•
Business investment and capital•
Financial services and investments•
Higher education•
Marketing and advertising•
Securities•
Securities and Exchange Commission (SEC)•
Social work, volunteer service, charitable organizations

Comments

Recent Activity

Latest Summary6/23/2023

Helping Angels Lead Our Startups Act of 2023 or the HALOS Act of 2023

This bill directs the Securities and Exchange Commission (SEC) to revise Regulation D, which exempts certain securities offerings from SEC registration requiremen...

Latest Action12/12/2023
Placed on the Union Calendar, Calendar No. 250.