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ARTICLE · 23 JULY 2013

Advertising Permitted With Strings Attached: Significant New Offering Rules For Private Funds And Their Managers

Holland & Knight
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On July 10, 2013, the Securities and Exchange Commission approved a final rule making changes to Rule 506 of the Securities Act of 1933.

United StatesFinance and Banking
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Scott MacLeod is a Partner in our Orlando office
Jay Crenshaw and Amy Rigdon are Associates in our Orlando office

1. GENERAL SOLICITATION ALLOWED

On July 10, 2013, the Securities and Exchange Commission (the SEC) approved a final rule making changes to Rule 506 of the Securities Act of 1933 (the most widely used and important exemption from federal and state registration of offerings) to permit issuers (including funds) to use general solicitation and general advertising to offer their securities provided both that:

  • all purchasers of the securities are accredited investors or the issuer reasonably believes that the investors so qualify
  • the issuer takes reasonable steps to verify that the investors are accredited investors

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