• SEC Adopts Significant Changes to Rule 506 to Permit General Solicitation and to Disqualify “Bad Actors”
  • July 26, 2013 | Authors: Michael T. Campoli; Bertrand C. Fry; Stephen M. Goodman
  • Law Firm: Pryor Cashman LLP - New York Office
  • At its open meeting held on July 10, 2013, the U.S. Securities and Exchange Commission (the “SEC”) approved final rules that, among other things, lift the ban on the use of general solicitation or general advertising (collectively, “general solicitation”) in offerings of securities that are exempt from registration under Rule 506 of Regulation D of the Securities Act of 1933, as amended (the “Securities Act”), and restrict the use of the Rule 506 exemption with respect to offerings in which “bad actors” and certain other felons are involved. The final rules will become effective 60 days after publication in the Federal Register.