On July 10, 2013, the SEC at an open meeting (i) adopted final rules eliminating the prohibition against general solicitation and general advertising(hereinafter referred to as a general solicitation) in certain securities offerings conducted pursuant to Rule 506 of Regulation D under the Securities Act, (ii) adopted final rules preventing felons and other bad actors from participating in private placement offerings, and (iii) proposed rules imposing additional requirements for issuers engaging in general solicitation. The final rules relating to lifting the ban on general solicitation and preventing felons and other bad actors from participating in private placement offerings will be effective 60 days after publication in the Federal Register. The proposed rules relating to the additional requirements are open for comments, which may be submitted on or before 60 days after publication in the Federal Register.
SEC Adopts Final Rules Permitting General Solicitation in Private Offerings
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