Updates
July 24, 2013

As the result of a final rulemaking taken by the U.S. Securities and Exchange Commission on July 10, 2013, issuers of securities will be permitted to use general solicitation and general advertising in unregistered securities offerings made in reliance on Rule 506 of Regulation D, provided that sales are limited to accredited investors and the issuer takes reasonable steps to verify that all purchasers of the securities are accredited investors. The rulemaking implements the Congressional mandate contained in the JOBS Act that directed the SEC amend Rule 506 of Regulation D to provide that the prohibition against general solicitation and advertising contained in Regulation D shall not apply to offers and sales of securities made pursuant to Rule 506, so long as all purchasers of the securities are accredited investors. The rulemaking becomes effective 60 days after publication in the Federal Register (meaning that the new rules could become effective as early as September 2013).

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