The Senate passed an amendment to its financial reform bill Monday night, eliminating changes that would have put severe restrictions in place for angel investors.
The Angel Capital Association has released a statement saying it is “pleased” by the amendment to the Restoring American Financial Stability Act of 2010, which removes a provision that would have required a 120-day federal review of all angel investment deals.
PeHub says that the introduction of the review period may have been “a bit of political theater” that was inserted so lawmakers could claim a compromise when it was removed.
The bill reintroduces a “bad actors” provision which was removed in 1996. The rule would keep anyone with a criminal record or who had trouble with securities regulators from investing for 10 years. That provision takes effect next year.
The amendment also maintains the current system used by angel investors to file their transactions.
The Angel Capital Association said that the original legislation would have prevented many entrepreneurs from forming a company by reducing the number of accredited angel investors by as much as 75 percent.
Senate officials have said there should be a final vote on the bill this week, and it could be signed into law by early July.<img title=”” src=”http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=3052&itemid=19785379″ alt=”ADNFCR-3052-ID-19785379-ADNFCR” />
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