The SEC Commission approved the Jumpstart Our Business Startups Act and the lifting of the ban on general solicitation according to the recent SEC press release. The JOBS Act is related to securities under Rule 506. The lifting of the ban is a measure to assist companies in finding investors and raising capital. Even if a security rests on Rule 506, the sales without the general solicitation ban are still limited to accredited investors only and the issuer must take reasonable steps to verify only accredited investors purchase. The Commission also voted on a proposal to provide for additional safeguards now that the ban has been lifted. To read more about the JOBS Act, click here. (http://www.sec.gov/spotlight/jobs-act.shtml)
In the same session, the SEC also adopted rules that disqualify felons and other bad actors from participating in certain securities offerings as required by the Dodd-Frank Act. To read the Dodd-Frank Act in its entirety, click here. (http://www.sec.gov/about/laws/wallstreetreform-cpa.pdf)
If you or someone you know has lost money as a result of an investment, please contact Richard Frankowski at 205-747-1903 to discuss your potential legal remedies.