• SEC Eliminates General Solicitation and General Advertising Prohibitions from Certain Private Placements
  • July 18, 2013 | Author: Michael L. Hermsen
  • Law Firm: Mayer Brown LLP - Chicago Office
  • On July 10, 2013, the US Securities and Exchange Commission adopted rules eliminating the prohibition against general solicitation and general advertising in certain offerings of securities pursuant to Rule 506 of Regulation D under the Securities Act of 1933 and in offerings pursuant to Rule 144A under the Securities Act. The changes were mandated by Title II of the Jumpstart Our Business Startups Act enacted on April 5, 2012, or the JOBS Act, and did not stray far from the rules as proposed by the SEC on August 29, 2012. The rule changes become effective 60 days after publication in the Federal Register, and until that date general solicitations and general advertising in connection with a Rule 506 or Rule 144A offering continues to be prohibited.