The SEC’s Bluff on Lifting the Ban on General Solicitation and Advertising

In one of the first major decisions of the SEC under its new chairman, Mary Jo White, the SEC has adopted long-awaited final rules which, when they go into effect, will allow companies to raise money in a private placement through general solicitation or advertising as long as all purchasers in the offering are accredited. While on its face this is a welcome development for companies seeking greater access to capital, the SEC has taken questionable steps that have the potential to eviscerate its potential benefits. To appreciate the significance of all of this, one has to step back and understand the landscape of raising money through the private sale of company securities. More in the Huffington Post here.