Bad Actor Provisions Effective One Week From Today

September 17, 2013

The disqualification and disclosure provisions under Rule 506(d) become effective one week from today, on September 23, 2013, and a failure to comply may result in a loss of the ability to rely on the Rule 506 offering exemption. It is important that advisers to private investment funds understand the implications of these provisions and consider taking certain steps to ensure their compliance prior to making any sales under Regulation D. For more information on the disqualification and disclosure provisions, please see our prior client memoranda entitled “Complying With the SEC’s New Bad Actor Provisions” (August 23, 2013) and “SEC Adopts Rules Disqualifying Certain Regulation D Offerings Involving Bad Actors” (August 2, 2013).

* * * * *

If you have any questions regarding compliance with the information discussed above, please contact your Investment Management Group attorney at Seward & Kissel LLP.  The Firm also offers a range of compliance support services.