SEC Adopts Significant Changes to Rule 506 to Permit General Solicitation and to Disqualify “Bad Actors”
On July 10, 2013, the Securities and Exchange Commission adopted rules that permit general solicitation and advertising in certain offerings of securities conducted pursuant to Rule 506 of Regulation D under the Securities Act. At the same time, the SEC adopted rules that disqualify certain “bad actors” from utilizing the Rule 506 safe harbor for securities offerings, and it proposed rules that would allow it to more easily assess market practices in Rule 506 offerings conducted with the use of general solicitation.
Partner Bertrand Fry, Co-Chair of Pryor Cashman’s Investment Management Group, and Partner Stephen Goodman and Counsel Michael Campoli of Pryor Cashman’s Corporate Group, have authored an important Legal Update summarizing these significant changes to the private offering marketplace.
To read the update, please click here.
