{"id":5192,"date":"2011-07-11T00:00:00","date_gmt":"2011-07-11T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2011\/07\/ban_on_private_securities_offe"},"modified":"2022-04-05T11:18:18","modified_gmt":"2022-04-05T16:18:18","slug":"ban-on-private-securities-offe","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/ban-on-private-securities-offe\/","title":{"rendered":"Ban on Private Securities Offerings Solicitations Could Be Revised by SEC or Congress, Says Ex-Official"},"content":{"rendered":"<p>According to ex- SEC&#8217;s Office of International Corporate Finance chief Sarah Hanks, there is the strong possibility that Congress or the Securities and Exchange Commission will modify the agency\u2019s ban on the general solicitation for private securities offerings and the number of shareholders that trigger reporting requirements. Hanks says that comments made by lawmakers and SEC Chairman Mary Schapiro indicate congressional intent to loosen the requirements, as well as \u201cregulatory momentum.\u201d Such changes could happen in the next couple of years.<\/p>\n<p>Restricted securities are securities that did not go through the SEC\u2019s registration and public processes. Requirements don\u2019t allow issuers of nonpublic offerings relying on Section 4(2) of the 1933 Act or its safe harbor\u2014Rule 506 of Regulation to use advertising or general solicitation to draw investors to their placements. The 1934 Securities Exchange Act\u2019s Section 12(g) mandates that an issuer register securities \u201cheld of record\u201d by at least 500 individuals and if the issuer\u2019s total assets are over $10 million.<\/p>\n<p>It was just recently that it became known that the SEC was investigating Goldman Sachs Group Inc.&#8217;s (GS)\u2019s reselling of Facebook-issued securities to investors. Earlier this year, the investment bank made the decision to limit the offering to offshore investors over concerns that the degree of media attention might result in a violation of US securities laws. According to The Wall Street Journal, although Facebook executives had to restructure the deal, the private offering of up to $1.5 billion in Facebook shares stayed on track. As of January, more than $7 billion in orders came through from foreign investors.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/ban-on-private-securities-offe\/\"  title=\"Continue Reading Ban on Private Securities Offerings Solicitations Could Be Revised by SEC or Congress, Says Ex-Official\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>According to ex- SEC&#8217;s Office of International Corporate Finance chief Sarah Hanks, there is the strong possibility that Congress or the Securities and Exchange Commission will modify the agency\u2019s ban on the general solicitation for private securities offerings and the number of shareholders that trigger reporting requirements. Hanks says that comments made by lawmakers and [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3772,3761],"tags":[],"class_list":["post-5192","post","type-post","status-publish","format-standard","hentry","category-private-placements","category-securities-and-exchange-commis"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Ban on Private Securities Offerings Solicitations Could Be Revised by SEC or Congress, Says Ex-Official &#8212; Investor Lawyers Blog &#8212; July 11, 2011<\/title>\n<meta name=\"description\" content=\"According to ex- SEC&#039;s Office of International Corporate Finance chief Sarah Hanks, there is the strong possibility that Congress or the Securities and &#8212; July 11, 2011\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/ban-on-private-securities-offe\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Ban on Private Securities Offerings Solicitations Could Be Revised by SEC or Congress, Says Ex-Official &#8212; Investor Lawyers Blog &#8212; July 11, 2011\" \/>\n<meta name=\"twitter:description\" content=\"According to ex- SEC&#039;s Office of International Corporate Finance chief Sarah Hanks, there is the strong possibility that Congress or the Securities and &#8212; July 11, 2011\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Ban on Private Securities Offerings Solicitations Could Be Revised by SEC or Congress, Says Ex-Official &#8212; Investor Lawyers Blog &#8212; July 11, 2011","description":"According to ex- SEC's Office of International Corporate Finance chief Sarah Hanks, there is the strong possibility that Congress or the Securities and &#8212; July 11, 2011","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/ban-on-private-securities-offe\/","twitter_card":"summary_large_image","twitter_title":"Ban on Private Securities Offerings Solicitations Could Be Revised by SEC or Congress, Says Ex-Official &#8212; Investor Lawyers Blog &#8212; July 11, 2011","twitter_description":"According to ex- SEC's Office of International Corporate Finance chief Sarah Hanks, there is the strong possibility that Congress or the Securities and &#8212; July 11, 2011","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/ban-on-private-securities-offe\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/ban-on-private-securities-offe\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Ban on Private Securities Offerings Solicitations Could Be Revised by SEC or Congress, Says Ex-Official","datePublished":"2011-07-11T05:00:00+00:00","dateModified":"2022-04-05T16:18:18+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/ban-on-private-securities-offe\/"},"wordCount":415,"articleSection":["Private Placements","Securities and Exchange Commission"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/ban-on-private-securities-offe\/","url":"https:\/\/www.investorlawyers.com\/blog\/ban-on-private-securities-offe\/","name":"Ban on Private Securities Offerings Solicitations Could Be Revised by SEC or Congress, Says Ex-Official &#8212; 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