For the last year, issuers have been allowed to use highway billboards, internet advertisements, cold calls to senior living centers, and promotional T-shirts to market their securities to investors, with no education for investors and limited disclosure of risks according to Democratic U.S. Senators.
In a letter to the SEC this week, Sens. Warren, Markey and Levin urged the SEC to adopt investor protections in private placements.
They want disclosure materials that describe the investment risks filed with the SEC and a Form D filed before (rather than after) sales are made.
http://www.markey.senate.gov/news/press-releases/markey-levin-warren-reed-push-sec-on-protections-in-general-solicitation
