New York New York (PRWEB) July 12, 2013
On July 11, 2013 the Securities and Exchange Commission (the Commission) adopted amendments to Rule 506 of Regulation D of the 1933 Act (Rule 506(c)) (SEC Release No.33-9415; No. 34-69959; No. IA-3624; File No. S7-07-
12) implementing changes mandating by the Jumpstart Our Business Startups Act (JOBS Act). Rule 506(c) permits an issuer to engage in general solicitation or general advertising in offering and selling of securities under Rule 506 provided such issuer reasonably believes and takes reasonable steps to verify that all investors in such offering are accredited. The amendments also include a non-exclusive list of methods issuers may use to satisfy the verification requirements of 506(c).
In separate releases the Commission also adopted rules disqualifying felons and other bad actors from participating in Rule 506 offerings (SEC Release No. 33-9414; File No. S7 -21-11) and proposed rule changes to Regulation D, Form D and Rule 156 of the Securities Act, including a requiring additional information on Form D, the filing of Form D 15 prior to engaging in general solicitation and submission of written solicitation materials to the Commission on a confidential basis, among other changes (SEC Release No. 33-9416; Release No. 34-69960; Release No.IC-30595; File No. S7-
06-13). Rule 506(c) becomes effective 60 days after its publication in the Federal Register.
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