Thomas J. Friedmann
Boston +1 617 728 7120
On Dec. 4, 2015, President Barack Obama signed into law the Fixing America’s Surface Transportation Act, dubbed the FAST Act. Embedded in this 1,300 page new law aimed principally at authorizing spending on new highways and transit projects is language that modifies Section 4 of the Securities Act of 1933, as amended (the “Securities Act”), through a new Section 4(a)(7) that codifies and clarifies a securities offering exemption that has informally existed for some time, the so-called Section 4(a)(1-½) exemption. This new law is anticipated to significantly enhance the ability for affiliates of companies to sell their securities, thus increasing general market liquidity for many companies.