SEC Proposes JOBS Act Rules to Allow Advertising in Private Offerings

August 29, 2012 § 1 Comment

At its Open Meeting today, the SEC proposed rules to allow general solicitation and advertising in connection with Rule 506 private placement offerings. Rule 506 is typically relied on by hedge funds and other private pooled investment vehicles when selling interests to investors. The rules were ordered by the JOBS Act and had been delayed by the SEC a number of times.

Issuers, intending to advertise will need to take reasonable steps to verify that their investors are accredited. In determining the reasonableness of the verification steps, issuers should generally consider the facts and circumstances of the transation. This includes, among other things:   « Read the rest of this entry »

California Private Fund Adviser Exemption Rules Approved

August 28, 2012 § Leave a comment

Final rules for California’s private fund adviser exemption–creating a new class of “exempt reporting advisers”–have been approved  and referred to the Secretary of State for publication. The exemption is immediately effective.  « Read the rest of this entry »

SEC Again Delays Action on Advertising Rules

August 22, 2012 § 1 Comment

The SEC announced that its open meeting to announce rules governing advertising of offerings under Rule 506, originally scheduled for August 22, has been delayed until August 29. This follows news from the SEC that it will be releasing only proposed rules for public comment at the meeting. Some had hoped the SEC would announce interim or temporary rules to go into effect immediately. Instead, any proposed rules announced by the SEC will be subject to usual public comment and review, typically between 30 and 60 days.   « Read the rest of this entry »

JOBS Act Repeal of Advertising Restrictions Further Delayed

August 20, 2012 § 3 Comments

UPDATE: SEC Again Delays Action on Advertising Rules

The SEC was expected to issue interim or temporary rules at its open meeting on August 22  that would have permitted private fund managers and others to begin advertising in connection with Rule 506 offerings of their securities. A recent statement, however, has announced that the SEC will instead only propose rules for public comment following the SEC’s typical rulemaking process. The SEC has already missed the original July 4 deadline imposed by the JOBS Act.

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SEC Charges Adviser for Failing to Produce Books and Records

August 16, 2012 § Leave a comment

A recent SEC enforcement action serves as a reminder to investment advisers of their obligations to keep detailed records of their advisory business and to provide those records promptly when examined by the SEC (or state regulators). Failure to satisfy these regulatory obligations can lead to suspension of firm’s registration and, for the firm’s principals, a bar from the industry.

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