SEC Advisory

SEC Proposes Rule Amendments to Lift Prohibition on General Solicitation and General Advertising in Connection with Private Offerings Made Pursuant to Regulation D

On April 5, 2012, President Obama signed into law the Jumpstart Our Business Startups Act (the “JOBS Act”), which was designed to facilitate the raising of capital by small businesses. Section 201(a) of the JOBS Act called for a significant relaxation of the current restrictions on general solicitation and general advertising (hereinafter referred to together as “general solicitation”) in connection with private offerings made pursuant to Rule 506 of Regulation D of the Securities Act of 1933, as amended (the “Securities Act”). This advisory discusses recent Securities and Exchange Commission (SEC) proposed amendments to Rule 506 (the “Proposed Amendments”) to implement these changes mandated by the JOBS Act.

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