Private Offerings: SEC Liberalizes the Rules but also Proposes New Requirements

On July 10, 2013, the Securities and Exchange Commission adopted rule changes that permit general solicitation and general advertising in private securities offerings made in reliance on Rule 506 or Rule 144A under the Securities Act and rule changes that make Rule 506 unavailable for an offering if “bad actors” are involved. The Commission also proposed a series of rule changes that would, if adopted, impose significant new requirements on Rule 506 offerings that are conducted with general solicitation or general advertising.