SEC Issues Proposed Rule on Lifting Ban on General Solicitation under Rule 506 Offerings

Simon RivelesGeneral Solicitation, Jobs Act

On August 29, 2012, the SEC voted, by a 4-1 margin, to issue a proposed rule (“proposed rule”) that would eliminate the current ban on general solicitation and general advertising (collectively “General Solicitation”) under Rule 506 and Rule 144A of the 1933 Securities Act. New rule 506(c) of Reg. D is the first rule proposed for implementing the Jumpstart Our Business Startup Act (the “JOBS …