Regulatory Alerts2012-09-05 | 2012-21681Added
Eliminating the Prohibition Against General Solicitation and General Advertising in Rule 506 and Rule 144A Offerings
The Securities and Exchange Commission proposes amendments to Rule 506 of Regulation D and Rule 144A to implement Section 201(a) of the JOBS Act by permitting general solicitation and advertising in private offerings. Under the proposed Rule 506 changes, issuers may use general solicitation provided all purchasers are accredited investors and the issuer takes reasonable steps to verify their status. The proposal also amends Rule 144A to allow offers to persons other than qualified institutional buyers, provided the seller reasonably believes they qualify, and requires a new Form D check box for Rule 506 offerings utilizing general solicitation.
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