Michael Rivera, Chuck Morton, Scott Gluck and Parker Morrill will present a CLE program for West LegalEdcenter entitled "SEC Rules on General Solicitation under Rules 506 and 144A and Related Prohibition on Bad Actors" on September 26, 2013.
On September 23, 2013, SEC rules took effect to eliminate the ban on general solicitation in offerings pursuant to Rules 506 and 144A and to prohibit certain bad actors from participating in Rule 506 offerings. The SEC also proposed related rules that would further affect Rule 506 and Rule 144A offerings.
These rules provide new opportunities for companies to attract investors while impeding certain “bad actors” from making use of the rules. This webcast will discuss what issuers, private funds, and anyone involved in private offerings can expect from the new rules.
Issuers may engage in general solicitation when conducting private offerings but they will need to comply with certain requirements.
Private funds should understand the opportunities and limitations of the new and proposed rules.
Felons and other “bad actors” are prohibited from participating in a Rule 506 offering that uses general solicitation.
Those involved with Rule 506 offerings will need to know the list of “disqualifying events” that would prevent someone from participating in a Rule 506 offering.
The “bad actor” prohibition may alter the collateral consequences of settlements with government agencies, and companies will need to know how to analyze those consequences under the new rules.