Tag Archives: disqualification

SEC Staff Continues To Issue “Bad Boy” Waivers

The secret to obtaining a “bad boy” waiver from the Securities and Exchange Commission is to show: the bad act did not involve an intent to defraud; the misconduct did not involve the sale of securities; the actor has taken … Continue reading

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Roadmap To Getting “Bad Actor” Disqualification Waived

A recent SEC no-action letter provides a road map as to how to get the staff to waive your “bad actor” disqualification from participating in private placements: claim that there was no “intent” to commit the act; say that the … Continue reading

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CFTC Settlement Provide for “Bad Boy” Exemptions

It pays to have smart lawyers. Money center banks who have found themselves as the subject of disciplinary orders from the Commodities Futures Trading Commission have settled cases with the inclusion of exemption language that provides them an automatic exemption … Continue reading

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Are Some Bad Actors More Equal Than Others?

Are some bad actors more worthy than others? Criminal and civil sanctions can bar banks from certain activities, including participating in the private capital markets. Securities and Exchange Commissioner Kara Stein thought so last year when the SEC gave a waiver … Continue reading

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Bad Brokers Could Spoil Your Exemption

The Wall Street Journal turns up more than 1,600 stockbrokers whose records failed to disclose bankruptcy filings, criminal charges or other red flags in violation of regulations, without regulators noticing. Note that under recent SEC regs, a “bad actor” includes … Continue reading

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Bad Actor Interps

The SEC is trickling out some interpretations on the Rule 506(d) “bad actor” disqualification. A couple of recent ones included:  All persons who have been or will be paid, directly or indirectly,remuneration for the solicitation of investors, including marketing personnel … Continue reading

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SEC Offers Bad Actor Clarity

In an attempt to clarify new Rule 506(d) that would disqualify an issuer’s exemption under Rule 506 if “covered persons” have engaged in “disqualifying acts,” the SEC issued a new set of interpretations, that include: determining a bad actor at … Continue reading

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SEC Tells Crowdfunding Funds “We’re Watching You”

The SEC’s head of the Division of Investment Management recently issued a warning to hedge funds and investment advisers (that could apply to other crowdfunders) that: (i) untrue statements in advertisements is prohibited; (ii) there should be policies and procedures … Continue reading

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SEC to Meet to Decide on Reg. D Solicitation Rules

The SEC has set a date for an open Commission meeting for next Wednesday to finally adopt rules relating to Title II of the JOBS Act, that will permit issuers to conduct Rule 506 offerings using general solicitation under Reg … Continue reading

Posted in Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, FINRA, Funding Portals, Investments, Legislative Intent, SEC, Small Business, Wall Street | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment