Handle with care – How to follow the new rules on private placements
Abstract: In September 2013, final SEC regulations lifting the ban on advertising and public solicitation for certain private placements took effect. Now, companies can finally use their websites, social media platforms, e-mail, broadcast and print advertising, and other forms of general solicitation to promote their offerings and find investors. This article explains how to screen investors and stay compliant with regulations. A sidebar offers four options to verify that all investors in Rule 506 private placements are accredited.