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.