• Rule 506 Revolution: The SEC Adopts Significant Amendments to the Rules Regarding Private Offerings of Securities
  • July 19, 2013 | Authors: Christina W. Marshall; Bruce Newsome; David H. Oden
  • Law Firms: Haynes and Boone, LLP - Richardson Office ; Haynes and Boone, LLP - Dallas Office ; Haynes and Boone, LLP - Richardson Office
  • On July 10, 2013, the Securities and Exchange Commission (SEC) adopted the new, much-anticipated rules that lift the ban on general solicitation and advertising in connection with certain private offerings of securities. In April 2012, Congress passed the Jumpstart our Business Startups (JOBS) Act, a revolutionary piece of legislation, which, among other things, directed the SEC to adopt rules permitting general solicitation and advertising in private offerings of securities. We are pleased that the SEC finally took action to remove the ban on general solicitation and advertising in connection with the private placement of securities pursuant to Rule 506 of Regulation D and resales of securities pursuant to Rule 144A. We believe these changes will have a significant positive economic impact.