Financial Reform Proposal: The Changing Standard for an Accredited Investor

As financial reform has made its way through Congress there have been several proposed changes to the standard of what it takes to be an accredited investor. In 1982, the SEC prescribed the standard in Rule 501 of Regulation D : 5. Any natural person whose individual net worth, or joint net...

Felons and Fund Managers

Most private funds rely on a Rule 506 exemption under Regulation D to sell their limited partnership interests to investors. A new SEC rule amending Rule 506 should catch the eye of private fund compliance officers. The concept it fairly straight-forward: felons should not be allowed to take advantage...

Foley & Lardner Alert: SEC Proposes Rule That Would Ban Bad Actors From Exempt Offerings

The Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted by Congress in July 2010, includes the requirement that the SEC implement a rule to ban persons who are subject to certain sanctions and disciplinary proceedings or who have been convicted of a felony or misdemeanor related to the...

Duane Morris Alert: SEC Proposes Disqualifying "Bad Actors" from Rule 506 Offerings

Proposed "bad actor" rules are likely to increase the risks and costs associated with Rule 506 offerings. The U.S. Securities and Exchange Commission (SEC) has announced proposed rules 1 that would deny the safe-harbor exemption provided by Rule 506 of Regulation D to securities for any...

Disqualifying Certain Persons From Reg. D Offerings -- Proposed Rules

By Cary J. Meer, Deborah A. Linn and Jarrod R. Melson Excerpt: On May 25, 2011, the Securities and Exchange Commission (the "SEC") proposed and sought comment on an amendment to Rule 506 of Regulation D under the Securities Act of 1933, as amended (the "1933 Act"), that would...

Morrison Foerster-One Down, One to Go: The SEC Completes the First Required Dodd-Frank Act Regulation D Rulemaking

The Securities and Exchange Commission (the "SEC") recently completed the first of two Regulation D rulemakings mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act"). The Dodd-Frank Act modified the net worth standard included in...