Opportunity Zone Magazine Volume 1, Issue 3 | Page 78

78 OPPORTUNITY ZONE MAGAZINE | VOLUME 1 • ISSUE 3 THE SECURITIES LAWS LANDSCAPE FOR OZ FUNDS AND THEIR MANAGERS By Christopher Rogers How to make sure that fund managers comply with security laws and don’t become an unintentional investment adviser. The landmark opportunity zone incentive marries tremendous tax benefits with economic development. Experienced and first time fund ‘sponsors’ alike are learning the intricacies of organizing a qualified opportunity fund (QOF) to gather investments, improve communities, and hopefully reap the rewards of investing in startups, growing and established businesses, and real estate-centric projects. Many have raised capital for other initiatives and know the definition of ‘accredited investor’ by heart. But with all of the attention to the Section 1400Z-1 and -2 of the Internal Revenue Code (OZ Incentive) and several rounds of Department of Treasury guidance, all QOF sponsors and managers should reacquaint themselves with the securities laws. 1 OPPORTUNITYZONE.COM