What is Rule 701?
Rule 701 is a regulation established by the U.S. Securities and Exchange Commission (SEC) that outlines circumstances under which private companies may be eligible for an exemption from registering certain equity awards with the SEC. This rule is often referenced by startups and early-stage companies when issuing stock options, shares, or other equity-based compensation to employees, directors, consultants, and advisors as part of employee benefit plans. Whether a company qualifies for this exemption depends on meeting specific conditions set out by the SEC.
The information provided here is for general informational purposes only and does not constitute legal advice or guidance from our company.
How can the platform support Rule 701 tracking?
If you want to track which records your company considers as issued under the Rule 701 exemption, just use the "Include in Rule 701 report" field on all Equity Grants, Share Transactions, and Warrants.
You can check this field when you add or edit a record.
If you’re importing multiple records at once, you’ll find this field in the import template—just set it as needed.
After your records are created, you can easily review which ones are included in Rule 701 reporting by checking your data exports.
This makes it simple to keep track of Rule 701-related records.