On July 10, 2013, the SEC adopted rules to implement the JOBS Act mandate to relax the prohibition against general solicitation in certain private offerings of securities. The final rule amending Rule 506 under Regulation D, as well as the SEC’s proposed rules relating to private offerings, provided a glimpse into the continuing debate about how to balance the desire to facilitate capital formation with the need to protect investors.
The SEC also adopted the “bad actor provisions” for Rule 506 offerings that it was required to implement pursuant to the Dodd-Frank Act. Finally, the SEC proposed rules intended to safeguard investors in the new world of general advertising and general solicitation.
To read our alert on the SEC’s new rules on general solicitation and general advertising in private offerings, click here.
To read our alert on the SEC’s “bad actor provisions” for Rule 506 offerings, click here.
Click here to visit our Jumpstarter blog for current updates and analysis of the new rules and matters relating to implementation of the JOBS Act.
Click here to read more about private funds using social media on MoFo’s Socially Aware blog.