Securities and Exchange Commission June 1, 2011 – Federal Register Recent Federal Regulation Documents

Disqualification of Felons and Other “Bad Actors” From Rule 506 Offerings
Document Number: 2011-13370
Type: Proposed Rule
Date: 2011-06-01
Agency: Securities and Exchange Commission, Agencies and Commissions
We are proposing amendments to our rules to implement Section 926 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 926 requires us to adopt rules that disqualify securities offerings involving certain ``felons and other `bad actors''' from reliance on the safe harbor from Securities Act registration provided by Rule 506 of Regulation D. The rules must be ``substantially similar'' to Rule 262, the disqualification provisions of Regulation A under the Securities Act, and must also cover matters enumerated in Section 926 (including certain state regulatory orders and bars).