SEC Proposes Amendments to Permit General Solicitation and General Advertising in Private Placements Under Rule 506 of Regulation D and Rule 144A

September 24, 2012
As directed by the Jumpstart Our Business Startups Act, the U.S. Securities and Exchange Commission has proposed amendments to its rules to eliminate the prohibition against general solicitation and general advertising in private placements conducted pursuant to Rule 506 of Regulation D or Rule 144A promulgated under the Securities Act of 1933. This update examines these proposed amendments, as well as the potential integration of 3(c)(1) funds with 3(c)(7) funds, the SEC’s position on integration of domestic offerings with offshore offerings, and the use of general solicitation and general advertising by private funds that are considered commodity pools under the Commodity Exchange Act.