Business Alert: SEC Lifts General Solicitation Ban on Certain Private Offerings
On July 10, 2013, the Securities and Exchange Commission (the “SEC”) adopted final rules that will allow advertising and other methods of general solicitation in connection with certain private offerings of securities under Rule 506 of Regulation D and Rule 144A under the Securities Act of 1933 (the “Securities Act”). The new rules also prohibit issuers from relying on Rule 506 for any offering in which “bad actors” affiliated with the issuer are involved. The disqualifying events include certain criminal convictions, SEC orders, and other administrative or regulatory actions.
