New SEC Rule on Private Investments Advertisements - Business Law Legal Blogs Posted by Nancy R. Lorence - Lawyers.com

New SEC Rule on Private Investments Advertisements

This is interesting and important.
Private placement offerings can only be sold to “accredited” individuals
– these are folks with income and wealth that can presumably withstand a
loss on an investment. That sale prohibition was accompanied
by a ban on advertising to the general public. Now, as reported by the
Washington Post (link below), the Securities and Exchange Commission
(the SEC) is expected to lift that advertising ban. The underlying
prohibition against sale to non-accredited individuals remain, although
some advocates argue that the definition of accredited needs to be
tightened.

http://www.washingtonpost.com/business/economy/sec-change-would-allow-hedge-funds-to-raise-money-by-advertising-to-the-public/2013/07/10/28125bfc-e94a-11e2-a301-ea5a8116d211_story.html?hpid=z10

 

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Nancy R. Lorence

Licensed since 1995

Member at firm Wagner Law LLC

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Nancy R. Lorence

Licensed since 1995

Member at firm Wagner Law LLC

RECENT POSTS

  • IRS Begins Program to Target Small Businesses
    Posted on August 12, 2013
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    The IRS has launched a program to investigate whether small businesses are under reporting cash income.  Reportedly, some 20,000 letters were sent to small businesses asking for additional information on receipts.  The letters are requests for information and not audits.  The IRS is concerned, it seems, with businesses who don’t report or who under-report cash ... Read more