September 27, 2013 News

CLIENT ALERT - Brave New World? New SEC General Solicitation Rules Go Effective

This is the first week of effectiveness for the U.S. Securities and Exchange Commission’s new rules that permit, within parameters, the general solicitation of prospective investors in certain securities offerings conducted without SEC registration.  The new rules 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 the securities are ultimately sold 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 that Act.  To learn more about how the market may change in the wake of the new rules becoming effective, please click here.