July 11, 2013 News

CLIENT ALERT - SEC Relaxes Ban on “General Solicitation” and “General Advertising” in Private Securities Offerings

Yesterday, the U.S. Securities and Exchange Commission adopted certain long-anticipated amendments to two of its safe harbor exemptions for private securities offerings The amendments, when effective, will make it possible for companies and funds to use advertising, the Internet  and other forms of mass communication when marketing their securities offerings, so long as securities sales are made only to “accredited investors” (“AIs”) in conformance with Rule 506 of Regulation D under the Securities Act of 1933, or “qualified institutional buyers” (“QIBs”) in conformance with Rule 144A under the Securities Act. To learn more about these changes in the federal securities laws, please click here.