Open Season for Private Placement Ads Begins

The ban on advertising and generally soliciting investors for private placements ends today.

Under the amendments to Rule 506, companies can now advertise online, in print and even on television. If done, they must then take reasonable steps to verify that their investors are “accredited,” and can no longer just rely on self certification.

State securities regulators are concerned about abuse and intend to be watchful for potential fraudulent activities. FINRA recently published an investor alert about the risks of private offerings.

http://www.finra.org/Investors/ProtectYourself/InvestorAlerts/PrivateOfferings/P339650

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, FINRA, Funding Portals, Investments, Legislative Intent, SEC, Small Business, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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