Noah J Nelson on Wednesday, Sep. 25th
Get ready for an onslaught of ads for movies that may never be made!
Alright, that's the cynical take. Now that we've gotten that out of the way: the actual news. The rules that the Security and Exchange Commission set up for general solicitation for film financing went live this week.
What that means is that movie producers can now turn to the general public to try and raise money for their pictures, even advertise that they are doing so. That's a huge shift. Duncan Cork of Slated's Filmonomics blog has a breakdown of what the rules really mean, including this catch:
However, under Rule 506c (the rule allowing for General Solicitation),filmmakers must make “reasonable efforts” to verify that their investors are "accredited”. The process of verifying an investor's accreditation depends onhow an investor defines him/herself as accredited. It is an onerous process that involves investors providing filmmakers with two years of tax returns, or relevant bank statements/brokering statements/credit reports and more.
The whole article is well worth the read.
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