SEC's proposed rules permitting general solicitation in Rule 506 offerings do not establish unifrom or specific methods to verify accredited investor status *

USA - August 30 2012
Section 201(a)(1) of The Jumpstart Our Business Startups Act (JOBS Act) required the Securities and Exchange Commission (SEC) to amend Rule 506 of Regulation D under the Securities Act of 1933 (Securities Act) to permit general solicitation or general advertising in offerings made under Rule 506 provided that all purchasers of the offered securities are accredited investors as defined in Rule 501(a) of Regulation D.

Co-authors: Pingshan Li, Kurt M. Lebakken, Howard M. Groedel.