SEC proposes to permit public communications in private placement rules

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In late August, the Securities and Exchange Commission (SEC) proposed, by a 4–1 vote, to permit general solicitation and general advertising under two of its private placement safe harbor rules. This will come in the form of rule amendments that are mandated by Section 201(a) of the Jumpstart Our Business Startups Act (JOBS Act). The first amendment will eliminate the prohibition against general solicitation and general advertising.

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