Securities Law

Posted on Monday, July 15 2013 at 2:26 pm by kparekh

SEC Opens the Door to General Solicitation and Advertising in Private Placements

On July 10, 2013, the Securities and Exchange Commission (SEC) adopted long-awaited amendments to Rules 506 and 144A promulgated under the Securities Act of 1933 as required by Section 201(a) of the Jumpstart Our Business Startups Act (the “JOBS Act”). [1] The amendments implement key provisions of the JOBS Act that are expected to have a substantial impact on how businesses and private funds raise capital by permitting, for the first time, general solicitation and advertising in private, unregistered offerings. As a result of the new rules, issuers will be able to use unrestricted internet sites, print, broadcast or social media, and public invitation presentations or seminars in conducting their Rule 506 offerings, provided that they limit sales to “accredited investors.”[2]

 Click here to continue reading article authored by David Eaton, Jeffrey Skinner and David Stockton.

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