David Scileppi, shareholder and co-leader of Gunster’s Securities practice, was one of a handful of securities attorneys weighing in on the Securities and Exchange Commission’s proposal in late August to remove the current ban against general solicitation and advertising for private securities offerings.
While the SEC’s proposal may appear to be issuer-friendly, Scileppi told Compliance Week, the SEC should have offered safe harbors that allow issuers to verify purchasers are accredited investors. Without it, issuers may have to choose between not using solicitation and advertising, or taking extraordinary measures to ensure the offering qualifies for the exemption.
Read the article (subscription required): Reactions mixed on SEC proposal on marketing of private placements by Joe Mont, Compliance Week (September 5, 2012).
Read a related The Securities Edge blog post by David Scileppi: Elimination of ban on general solicitation and advertising may leave some questions unanswered (August 29, 2012) and another by Gunster shareholder Greg Bader: Securities Law 101 (Part II): Avoiding the pitfalls in a private placement (September 7, 2012).
