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New Bad Actor New Rule 506 (d) – A Continuous Diligence Headache for Emerging Companies

Publisher: McCarter & English, LLP
Author: Jonathan Guest

On July 10th, 2013, the SEC© adopted final Rule 506(d) to “disqualify felons and other bad actors” from Regulation D private offerings.

New Rule 506(d) identifies persons and triggering events that can disqualify an offering from relying on Rule 506 – the most widely used registration exemption for private placements of securities, resulting in billions of dollars of investment proceeds each year. This new rule has important implications for emerging companies. To read more about how this may affect your business, please click here.

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