Perspective
Aug. 7, 2013
Fraud concerns as SEC lifts decades old ban on solicitation
The lone dissenter in the SEC warned that the new rule "will prove be a great boon to the fraudster" and could "lead to economic disaster for many investors." By Mark Ankcorn
Soon, the airwaves, Internet and print media may be filled with ads soliciting the opportunity to buy into starts-ups, hedge or private equity funds.
Consumers have been spared these pitches for years under Regulation D (Rule 506) of the Securities Act of 1933. But unfortunately, the Securities Exchange Commission recently voted to lift this more than 80-year-old ban on public solicitation of investments in private companies, which means...
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