Once again I had the fun opportunity to work on a writing project with Lauren Hakala from Practical Law.
This time we updated the previous piece we had written on General Solicitation, to take into account the recent SEC guidance.
General Solicitation: What Are the Highlights of the SEC’s New Guidance?
The SEC provided helpful advice on the following fronts:
- Confirmation that use of an unrestricted web site constitutes general solicitation (no surprise here).
- Helpful guidance on what constitutes a “substantive, pre-existing relationship.”
- Helpful guidance on angel groups, and how angel groups can help avoid general solicitation.
Where Can You Find the New SEC Guidance?
The SEC issued the new Compliance & Disclosure Interpretations on General Solicitation on August 6, 2015. I have included links to each of the new C&DI questions below.
C&DIs – Securities Act Rules (UPDATED 08/06/2015)
Section 256. Rule 502 — General Conditions to be Met
• New Question 256.23
• New Question 256.24
• New Question 256.25
• New Question 256.26
• New Question 256.27
• New Question 256.28
• New Question 256.29
• New Question 256.30
• New Question 256.31
• New Question 256.32
• New Question 256.33
Where to Download the Article
You can download the Practical Law article here:
General Solicitation and Startup Capital Raising Guidance and Questions (5-548-2425)