Client Alert: SEC Provides New Guidance Regarding Accredited Investor Verification in Rule 506© Offerings
By EsqSocial Corporation 01/05/25
Under Rule 506(c) of Regulation D of the Securities Act of 1933, as amended (the “Securities Act”), general solicitation of prospective purchasers is permitted if the issuer takes reasonable steps to verify the purchasers’ accredited investor status. Rule 506(c) enumerates non-exclusive and non-mandatory methods on which issuers can rely to satisfy the verification requirement, or issuers may apply a reasonableness standard directly to the specific facts and circumstances of the particular...
By: Shumaker, Loop & Kendrick, LLP