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