What is a Regulation A+ Transfer Agent and Why You Need One?

by | Sep 24, 2018 | Financial Services


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While Regulation A has been available for many years, it’s not used or highly popular because of all the rules required to raise capital. Now called Regulation A+, it can now be used to raise more capital from unaccredited and accredited investors. The new funding limits include $20 million for Tier 1 and $50 million for Tier 2, which allows you to offer/sell more freely-transferable and unrestricted securities. Therefore, you can get secondary trading immediately. The goal of hiring a Regulation A+ transfer agent is to allow you, as a smaller company, to access more of your capital because the funding limits are now raised.

Of course, the SEC rules require that any issuers conducting Tier 2 offerings under this regulation to utilize a transfer agent to do so. The agent has to be registered with the SEC prior to you using their services.

How to Choose a Regulation A+ Transfer Agent

Because you must use their services, it is essential that you choose the right agent to help you. Therefore, you should consider one with many years of experience. Along with such, they must be registered with the SEC and be in good standing.

Many times, these agents work directly with you or the appropriate department; they can also work with your legal counsel to guide them and you through the complexities associated with A+ laws and logistics. They can also help you with closing support, bank account maintenance, and payment distribution.

Other things they can help with include DTC eligibility and learning to become a DWAC/FAST participating issuer, filling stock exchange applications to the NYSE or NASDAQ, connecting you with market makers to submit appropriate 15c211 applications, and more. Making use of a Regulation A+ transfer agent can help you save money and time. Visit Colonial Stock Transfer Company, Inc for more information.

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