Eliminating The Prohibition On General Soliciation For Commodity Pools

When the SEC finalizes proposed rules that eliminate the prohibition on general solicitation and general advertising, private funds will be free to jump in and publicly offer their securities, right?

Not so fast, especially if the private fund is a commodity pool under the Commodity Exchange Act.

Among other things, Section 201(a)(1) of the JOBS Act mandated the SEC to revise Rule 506 of Regulation D under the Securities Act to eliminate the prohibition against general solicitation and general advertising for offerings to accredited investors.  Section 201(b) of the JOBS Act amends Section 4 of the Securities Act of 1933 to clarify that offerings made under Rule 506 won't be considered public offerings under the federal securities laws if they rely on the exemption.