New Rule 506(c) creates uncertainty for hedge fund advisers considering general solicitation and general advertising, because the SEC required reasonable steps to verify accreditation without supplying a bright line rule for the content of such solicitation.
Source quote, verbatim
New Rule 506(c) creates uncertainty for hedge fund advisers considering GSGA.
From
Kaal and Oesterle, The History of Hedge Fund Regulation in the United States (2016), Hedge Funds Can Advertise Generally, p. 16 https://ssrn.com/abstract=2714974 · source PDF
Cite as
Kaal and Oesterle, The History of Hedge Fund Regulation in the United States (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2714974
Holds when
applies to Regulation D offerings under Rule 506(c) after September 23, 2013
Classification
failuresupport: arguedfailure: Absence of bright line verification standardfamily: definitional-ambiguitycitation-and-knowledge
Related claims
extended_bykaal:claim:2715083-033 The JOBS Act reform underdelivers on its own terms: because investor verification under Rule 506(c) is legally...
extended_bykaal:claim:2739479-014 Lifting the ban on general solicitation and general advertising was a significant formal change for private fu...
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