Lifting the Ban on General Solicitation

From a securities compliance perspective, when you see an advertisement or an email seeking capital for an investment opportunity there is most likely a problem. Now there is a bill in Congress that would change that view. When selling a security, you need to register the security or find an appropriate...

Rep. McCarthy (R-CA) Introduces Legislation to Eliminate Ban on General Solicitation for Private Placements

Representative Kevin McCarthy (R-CA and House Majority Whip) recently introduced the Access to Capital for Job Creators Act (H.R. 2940) , which would remove the ban on general solicitation for securities offering conducted under Rule 506 of Regulation D. Rule 506 is a safe harbor regulation which...

Lifting the Ban on General Solicitation and General Advertising

On Thursday afternoon, the US Senate passed the Jumpstart Our Business Startups Act, a bill designed to make it easier for small companies to raise capital. The centerpiece of the legislation is the crowdfunding provision. However, the Senate passed an amendment to that section of the legislation...

EB-5 Practice under the JOBS Act

Since the Jumpstart Our Business Startups Act (JOBS Act) was passed by Congress this past April, the EB-5 community has waited in anticipation for the Securities Exchange Commission (SEC) to revise its rul es to remove the prohibition on general solicitation and general advertising under Regulation...

General Solicitation of Accredited Investors in 2013?

The SEC has made official what we blogged about yesterday: Late yesterday it removed from its agenda for today's meeting the consideration of general solicitation in Rule 506 and Rule 144A offerings. The SEC also released a separate meeting notice for August 29, 2012, which states it will consider...