In a previous client alert we discussed rules proposed in August 2012 by the Securities and Exchange Commission (“Commission”) to allow for general solicitation, or public advertising, in private securities offerings conducted pursuant to Rule 506 of Regulation D and Rule 144A under the Securities Act of 1933. On July 10, 2013, the Commission adopted final rules to eliminate the ban on general solicitation in offerings pursuant to Rules 506 and 144A.

In addition, the Commission adopted final rules to prohibit certain “bad actors” from participating in Rule 506 offerings and proposed rules that would impose additional requirements on issuers conducting Rule 506 offerings.


Rule 506 Offerings -

New Rule 506(c) was adopted to allow issuers to use general solicitation to offer securities in Rule 506 offerings. There are a few conditions to the rule...

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  Advertising, General Solicitation, JOBS Act, Private Placements, Regulation D, Rule 144A, Rule 506 Offerings, SEC, Securities Act of 1933

Published In: Communications & Media Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Venable LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »