As much as the elimination of the ban on general solicitation of private placements through the passage of Rule 506(c) creates significant opportunities for private issuers, the U.S. Securities and Exchange Commission (SEC) has also proposed a series of rule changes that will, if passed, increase disclosure requirements and impose new consequences for failure to follow the new rules. While these proposals, if adopted, should not dampen your enthusiasm over the doors that new Rule 506(c) will open, you just need to look carefully as you cross the threshold.
To read the original article: Law Firm Of Pepper Hamilton LLP | The SEC’s Proposed Rule Changes under the JOBS Act
