SEC Approves Repeal of Advertising Prohibition

July 10, 2013 § Leave a comment

After lengthy delays, the SEC approved final rules to repeal the prohibition on advertising in connection with Rule 506 private placement offerings.  The final rules were modified only slightly from the previously proposed version. The repeal will become effective in early September. « Read the rest of this entry »

Comments Show Divergent Responses to Proposed SEC Advertising Rules

October 30, 2012 § 2 Comments

After multiple delays, the SEC finally proposed rule changes to permit advertising under Rule 506 offerings and invited comments from the public. To date, the SEC has received over 150 of comments which show a wide range of responses to the proposed rule. Given the number and range of responses, we anticipate slow going for adoption of final rules. « Read the rest of this entry »

SEC Launches National Exam Program for Newly-Registered Fund Advisers

October 14, 2012 § Leave a comment

The SEC’s Office of Compliance Inspections and Examinations (OCIE) recently announced creation of the National Exam Program (NEP), a two-year initiative to conduct risk-based examinations of advisers to private funds that recently registered with the SEC (i.e., registered after Dodd-Frank). The so-called “Presence Exams” initiative will take place over three phases: engagement, examination and reporting.  « Read the rest of this entry »

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 »

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