• SEC Takes Significant Actions with Respect to Ban on General Solicitation and Advertising in Private Placements; Finalizes Disqualification for Certain "Bad Actors"; and Proposes Significant Changes to Form D and Private Placement Process
  • July 24, 2013 | Authors: Cole Beaubouef; Scott H. Moss
  • Law Firm: Lowenstein Sandler LLP - New York Office
  • On July 10, 2013, in an open meeting of the Securities and Exchange Commission (“SEC”), the SEC took certain actions that will significantly alter the current private placement landscape. Specifically, the SEC adopted final rules implementing Section 201(a) of the Jumpstart Our Business Startups Act (the “JOBS Act”), which will eliminate the prohibition on general solicitation and advertising for certain offerings made under Rule 506 of Regulation D of the Securities Act of 1933 (the “Securities Act”) and for certain offerings made pursuant to Rule 144A under the Securities Act. In connection with this issuance, the SEC also adopted certain changes to Form D to accommodate the elimination of the prohibition on general solicitation and advertising.