Section Newsletter Articles on Consumer Protection Act
Proposed “Bad Actor” exclusion to Rule 506 offerings
Business and Securities Law
, July 2011
On May 27, 2011, the Securities and Exchange Commission released a proposed rule which would disqualify an entity from using the Rule 506 private offering safe-harbor if the entity or a “covered person” associated with the entity is or was involved in specified violations of securities laws, securities administrators or other regulatory entities.