Market regulation · 01/06/2011

SEC Proposes Rule Amendments to Disqualify Felons and Other 'Bad Actors' From Rule 506 Offerings

The SEC is proposing amendments to its rules to implement Section 926 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which would disqualify certain individuals, including felons and those with certain state regulatory orders, from relying on the safe harbor from Securities Act registration provided by Rule 506 of Regulation D.