I’m planning a Reg D offering and want to make sure I follow the right procedures. What are the main compliance requirements, and how does Rule 506(b) differ from 506(c)? I’ve heard about Form D filing, but is it mandatory in every case?
Reg D offerings allow companies to raise capital while bypassing SEC registration, but compliance is crucial. Rule 506(b) permits up to 35 non-accredited investors, while 506(c) allows general solicitation but limits sales to accredited investors. For a deeper look, read this FAQ https://federal-lawyer.com/securities-litigation/investment-lawyer/ppm/section-4a2-guide/ . Filing Form D is highly recommended, as it provides transparency and minimizes regulatory scrutiny. Additionally, issuers must ensure proper investor verification under 506(c). While Reg D simplifies fundraising, legal guidance is advised to navigate disclosure obligations and avoid violations that could compromise the exemption.
You must be logged in to reply to this topic.