"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...
Rule 506 is by far the most widely used Regulation D exemption for conducting private placements. According to the SEC, about 90-95% of all private placements are conducted pursuant to Rule 506. This Rule permits sales of an unlimited dollar amount of securities without Securities Act registration, provided...