August 29, 2013

On July 10, 2013, the U.S. Securities and Exchange Commission adopted amendments to Rule 506 and another provision of Regulation D to specify who is a "bad actor" and to provide that offerings involving a "bad actor" are disqualified from using the widely-relied on Rule 506 exemption. Rule 506 is the exemption of choice for hedge funds, private equity funds, venture capital funds, and small to mid-size operating companies seeking to raise capital by issuing unregistered securities.

To read the full e-Alert click here.