Amendment clarifies that the general advertising provision should only apply to Regulation D, rule 506 of the securities offerings; protects investors by allowing for general advertising in the secondary sale of securities, so long as only qualified institutional buyers purchase the securities; and provides consistency in the interpretation for regulators that general advertising should not cause private offerings to be considered public offerings.

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Amendment Number
977
Description
Amendment clarifies that the general advertising provision should only apply to Regulation D, rule 506 of the securities offerings; protects investors by allowing for general advertising in the secondary sale of securities, so long as only qualified institutional buyers purchase the securities; and provides consistency in the interpretation for regulators that general advertising should not cause private offerings to be considered public offerings.
Purpose
An amendment numbered 10 printed in House Report 112-409 to clarify that general advertising under this provision should only apply to Regulation D rule 506 offerings, allow for general solicitation in the secondary sale of these securities so long as only qualified institutional buyers purchase the securities, and provide consistency in interpretation that general advertising should not cause these offerings to be considered public offerings.
Congress
112
Type
HAMDT
Latest Action Date
Mar 7, 2012
Latest Action Text
On agreeing to the McCarthy (CA) amendment (A010) Agreed to by voice vote.
Latest Action Time
17:55:05
Submitted Date
Mar 7, 2012
Chamber
House of Representatives
Update Date
Feb 3, 2022
Amendment 977 — Informed