SEC Proposes Disqualifying "Bad Actors" from Rule 506 Offerings


The U.S. Securities and Exchange Commission (SEC) has announced proposed rules1 that would deny the safe-harbor exemption provided by Rule 506 of Regulation D to securities for any offering involving certain "felons and other 'bad actors'" under the Securities Act of 1933 (the "Securities Act"). The period for comments on the proposed rules expires on July 14, 2011.

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Published In: Administrative Agency 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.

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