By Simon Riveles and Peter Tyson On July 10, 2013, the Securities and Exchange Commission (SEC) adopted amendments to Rule 506 of the Securities Act of 1933 to disqualify securities offerings relying on the Rule 506 exemption that involve certain “felons and other ‘bad actors’”. The final amendments (the Final Rules) went into effect on September 23, 2013 (the Effective Date) and apply to all …
CPO Exemptions and General Solicitation
The Securities and Exchange Commission (“SEC”) recently adopted the final rules amending Rule 506 of the Securities Act of 1933, which will eliminate the prohibition on general solicitation for private funds provided fund managers only offer interests to “accredited” investors and take reasonable steps to verify each investor’s accredited status. The final rules will go into effect September 23, 2013. While many private fund managers …