General Solicitation- Rule 506(c)
The US Government regulates how entities can solicit funds for restricted securities in Rule 506(c). Entities are need to confirm:
- All purchasers in the offering are accredited investors
- The issuer takes reasonable steps to verify purchasers’ accredited investor status and
- Certain other conditions in Regulation D are satisfied
Link to the SEC site regarding Rule 506(c), General Solicitation: https://www.sec.gov/resources-small-businesses/exempt-offerings/general-solicitation-rule-506c