Frequently Ask Question's (SEC)

We do not feel it is necessary to do that and the reason is simple,  We have Registered with the Biggest Financial Regulator known to all. 

 The FCC (Federal Communications Commission) is a U.S.-based regulatory agency and does not operate internationally. However, I think you might be referring to the SEC (Securities and Exchange Commission), which, while it’s a U.S. agency, does have global influence through its enforcement of financial regulations that impact international markets.

Even if a company does not operate on U.S. soil, the SEC can still have a significant impact. For example, take Binance, a company that’s registered offshore and doesn’t operate in the U.S. directly. The SEC filed 13 different charges against Binance and its founder despite Binance being an international entity. This shows that the SEC has far-reaching powers beyond U.S. borders, especially when U.S. investors are involved. And this isn’t limited to just the SEC. Other U.S. legal entities, like the Department of Justice (DOJ), also have the authority to file charges and pursue international companies. Binance is a good example here as well. The DOJ filed federal charges against Binance, resulting in a $4 billion resolution. This further highlights that U.S. regulatory and legal systems can extend their reach beyond U.S. borders when necessary.

We explored this option and concluded that the SEC is the top financial regulator. They’re essentially at the top of the regulatory hierarchy, so there’s no practical need for us to register with any other agencies. The SEC is the gold standard, so we don’t see the necessity to register elsewhere

The SEC offers a layer of protection by holding companies accountable and ensuring they follow regulations, but they don’t necessarily guarantee the return of lost assets if a company goes under. They can, however, take legal action, even against international companies, to try to protect investors as much as possible. The SEC’s focus is more on ensuring regulatory compliance, protecting investors from fraudulent activities, and holding companies accountable if they engage in misconduct. While the SEC can’t directly recover funds in all cases, their regulatory framework provides a measure of oversight and potential recourse for investors through legal action.

 Yes, we do have a legal department that manages all our legal affairs. Our legal team consists of six qualified lawyers who handle all such matters.

Regarding your question about the SEC, it’s important to note that in any type of investment—whether through an investment bank or firm—it’s always emphasized that all investments carry risk. There is no guarantee that your investment is 100% safe, even if the company is regulated by the SEC. No investment in the world is risk-free, and no company can guarantee complete safety. This is a reality all investors need to accept as part of the process.

 Yes, following these procedures does help to minimize risk. Being overseen by the SEC requires us to submit our accounts for review. This oversight ensures that the accounts we submit are accurate and transparent, as any manipulation would be evident to the SEC. Their scrutiny significantly reduces the likelihood of errors or issues, which in turn lowers the risk. Therefore, our adherence to these regulations positively impacts risk mitigation.

We do not have a PPM (Private Placement Memorandum) in place. We are a new company, and we are still putting several things in place

Yes. Implementing these procedures definitely helps minimize the risk. We are overseen by the SEC, and as part of this oversight, we are required to submit our accounts for their review. The SEC ensures that all the accounts we submit are accurate and properly audited. Any attempt to manipulate the accounts would be immediately obvious to them, as this is their area of expertise. So, yes, there is a significant positive impact on risk minimization as a result of this oversight

Our number one priority is safety, which is why we felt it was critical to align ourselves with the SEC. The SEC isn’t just any financial regulator—they are the top financial regulator in the world, known for being very strict. Many companies avoid working with them for that reason. However, because we prioritize safety above all, we decided to align ourselves with the SEC from the very beginning.

The CEO change has no impact on the company’s filings with the SEC, as the former CEO was not the one who filed the Form D. CEOs and officers of a corporation can be replaced at the board’s discretion. Therefore, this change has no significant effect on the company, particularly in its early stages.

The only way the company could be shut down is if they fail to file their required documents on time. However, the accounting team works closely with the legal team to ensure filings are done promptly. They follow a clear financial objective and filing process to maintain compliance with the SEC. I have already asked these questions, and I can confirm that everything is handled efficiently.

Absolutely, it's crucial to understand the difference between these terms. Let’s start with the word "license." When people hear the term "license," they often think of the licensing requirements for financial advisors who offer securities. For example, I had my Series 6 and Series 63 licenses when I was about 24 years old. These licenses are necessary for anyone offering securities like stocks, bonds, or mutual funds. However, when it comes to raising capital for a business, like what companies such as Apple, Microsoft, Tesla, or Google do, the situation is different. These companies are not offering traditional securities in the form of stocks or bonds when they raise capital. They often file under Regulation D, which means they are soliciting funds for unregistered securities. This is simply a way to raise capital without needing the same type of licenses required for offering securities to investors. 

So, people need to understand the distinction: being licensed to offer securities for investment is different from raising capital for a business. You don't need a license to raise capital. The confusion comes when people mix up these two separate activities.

Yes, that’s correct. Now, let’s talk about the word "approval." When people visit the SEC website, they sometimes think that the SEC must give them approval to file a Form D. But that’s not exactly how it works. Before you can submit a Form D, you have to go through a rigorous background investigation. The SEC doesn’t approve your business per se; they ensure that you, as an individual, meet their standards. Once they are satisfied with the background check, they provide you with two essential codes: the CIK number and the EDGAR access code. These codes are what allow you to log into the system and file the necessary forms. So, the "approval" isn’t about the SEC endorsing your business; it’s about granting you the access to file. You can’t just submit a Form D on a whim. You need those codes as proof that the SEC has completed its due diligence and is giving you the green light to.

 Yes, I understand what you're asking. I’ll discuss the specifics of that questionnaire with you offline because I don't refer to that website, but I'll give you a general answer for now. You’re referring to the difference between a qualified investor and a non-qualified investor, correct?          

Yes, that's right. The company has qualified investors to comply with the 506(c) exemption, which is significant. I’m aware of the answer, but I want people to understand why this is important. It’s impressive that the company went through the effort to obtain this exemption instead of opting for the 506(b). Could you clarify the difference between a qualified investor needed for a 506(c) and the general public or non-accredited investors? 

Absolutely. It seems like you’re asking about the letter of accreditation and the requirements for accredited investors. This is not a casual decision for the company—it’s a serious step to ensure compliance. For a 506(c) offering, while a letter of accreditation is not explicitly required by the SEC, obtaining such a letter is one of the accepted methods to meet the 'reasonable steps' verification requirements. This means that even though it's not mandatory, many companies opt to request a letter of accreditation to streamline the verification process and ensure compliance with SEC requirements.

To summarize, while a letter of accreditation isn’t required by the SEC, it's a common practice under rule 506(c) to verify the accredited status of investors. In contrast, for a 506(b) offering, self-certification is often sufficient because it is not enforceable at the federal or state level. Essentially, it’s up to the business entity to make this a requirement, even though it’s not enforceable. This shows the company’s commitment to transparency and compliance, and it’s why I’m confident in their approach."