Markets
Uncertainty Remains on Eve of Exempt Offering Advertising
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Beginning on Sept. 23, companies will for the first time in 80 years be able to advertise offerings of securities exempt from registration, as the ban on general solicitation officially expires. Crowdfunding portals, angel capital providers, venture capital funds and other proponents of startups and small growth companies have been looking forward to the day ever since April 2012. That’s when Title II of the JOBS Act required the Securities and Exchange Commission to end the ban on general solicitation in Rule 506 offerings under Regulation D as long as buyers of the securities were accredited investors. In July, the SEC approved the creation of Rule 506(c), which allows issuers to advertise exempt offerings, as well as other regulations related to Title II.
