New York updates securities regulations effective December 2, 2020

This change affects fees associated with Form D filings

At Assure we are committed to protecting our clients and their investments by adhering to federal and state securities laws and regulations. These laws are constantly evolving and on December 1, 2020 the State of New York announced an update to its securities regulations.

New York announced on December 1, 2020 that, effective December 2, 2020, New York will require a state notice filing whenever a Form D is filed at the federal level. All SPVs arranged through Assure require the Form D filing; therefore, this requires us to make a notice filing in New York for any SPV that has an investor with residency in New York state.

Like many states, for each SPV there is an associated fee for the New York notice filing. The fee is $300 for raise amounts less than $500,000. If the amount raised by the SPV is greater than $500,000, the SPV’s New York filing fee will be $1,200.

If your SPV has an investor with a New York state residency, then we will be making a notice filing in New York along with the accompanying fee for each SPV. Like all blue sky fees, the client and the SPV are responsible for this fee and should account for this expense in the amounts raised by the SPV.

It is unusual that a state would effect this type of regulation change with so little notice, and although we were aware that the state of New York was contemplating this change, the December 2nd effective date has caught many issuers and administrators by surprise. At Assure we aim to let you know about any updates and additional costs for your SPVs as soon as possible.

Please let us know if you have any questions or concerns.

Thank you,