--- title: Recent Comments Blast SEC and Foreshadow Rule 506 Amendment Delays description: Recent Comments Blast SEC and Foreshadow Rule 506 Amendment Delays --- [![Jacko Law Group, PC - Securities Law](https://resources.jackolg.com/hubfs/Jackolawgroup%20February2018/image/brand.png)](http://www.jackolg.com/) Call Today for a Consultation San Diego 619-298-2880 San Francisco 415-766-3599 Los Angeles 213-631-2549 Menu [Contact](http://www.jackolg.com/Contact.shtml) - [Home](http://www.jackolg.com/) - [Firm Overview](http://www.jackolg.com/Firm-Overview/) - [Professionals](http://www.jackolg.com/Professionals/) - [Events](http://www.jackolg.com/Events.shtml) - [News](http://www.jackolg.com/News-Room/) - [Blog](http://www.jackolg.com/blog/) - [Videos](http://www.jackolg.com/Videos.shtml) - [Contact](http://www.jackolg.com/Contact.shtml) # Understand. Define. Achieve. 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View Our Practice Areas - [SEC/FINRA Regulatory Counsel](http://www.jackolg.com/Regulatory-Examinations-and-Inquiries-SEC-and-FINRA/) - [Private Equity & Hedge Fund Counsel](http://www.jackolg.com/Private-Equity-Counsel/) - [Investment Adviser Services](http://www.jackolg.com/Legal-Considerations-for-Breaking-Away/Investment-Adviser-Counsel.shtml) - [Breakaways And Transitions](http://www.jackolg.com/Legal-Considerations-for-Breaking-Away/) - [General Corporate Counsel](http://www.jackolg.com/Corporate-Counsel/) - [Broker- Dealer Counsel](http://www.jackolg.com/Broker-Dealer-Counsel/) #### News - [Legal Tips](http://www.jackolg.com/News-Room/) - [Publications](http://www.jackolg.com/News-Room/Publications.shtml) - [Blog](http://www.jackolg.com/blog/) # Jacko Law Group Blog # Recent Comments Blast SEC and Foreshadow Rule 506 Amendment Delays Earlier this month Luis Aguilar, a Commissioner at the Securities and Exchange Commission (“SEC”), gave a [speech](http://www.sec.gov/news/speech/2013/spch041613laa.htm#P49_6532) at the Regulatory Compliance Association’s 2013 program on regulations, operations and compliance. While the views expressed were Mr. Aguilar’s alone, and do not necessarily reflect the views of the SEC, Mr. Aguilar discussed, among other things, the importance of compliance practices being developed and maintained in the interest of investors. To this end, Mr. Aguilar criticized the SEC’s recent proposal to amend Rule 506 of the Securities Act of 1933 (the “Act”), stating he was “disappointed” in the Commission and had “never seen a more aggressive effort to exclude pro-investor initiatives.” [Rule 506](http://taft.law.uc.edu/CCL/33ActRls/rule506.html)is one of three exemptive rules for limited offerings under [Regulation D](http://www.sec.gov/answers/regd.htm) of the Act permitting the sale of unregistered securities to an unlimited number of [accredited investors](http://www.sec.gov/answers/accred.htm) and up to 35 non-accredited investors, so long as there is no general solicitation, and as long as appropriate resale limitations are imposed. [Section 201(a)(1)](http://www.gpo.gov/fdsys/pkg/BILLS-112hr3606enr/pdf/BILLS-112hr3606enr.pdf) of the Jumpstart Our Business Startups Act (the “JOBS Act”) directs the SEC to amend Rule 506 to allow for general solicitation, provided that all purchasers of the securities are accredited investors. Originally, these amendments were to be implemented in July of 2012. The SEC delayed rule-making at that time, however, and on two separate occasions since, the Commission has not set a new deadline on when these amendments will take effect. Additionally, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”) mandates that Rule 506 must be amended to prevent so-called “bad actors” (*i.e.*, felons and other law-breakers) from utilizing this rule, in an attempt to provide additional investor protection. Congress had directed the SEC to institute this disqualification nearly two years before the JOBS Act had called for the lift on general solicitation, but again the SEC has failed to make such changes. According to Mr. Aguilar, he recently voted “no” on the most recent proposal by the SEC that would amend the general solicitation aspect of Rule 506, finding it to be “fatally flawed” and “ignor\[ing\] the recommendations by investors and other regulators.” Additionally, Mr. Aguilar expressed his disappointment in the SEC’s “apparent lack of urgency” in implementing the “bad actor” amendments to Rule 506. In his opinion, such provisions are “much needed investor protections” and their delay “only hurts investors.” These comments imply that final amendments to Rule 506 are not to be expected in the immediate future. In fact, in Mr. Aguilar’s opinion, the entire amendment structure should be “re-proposed” in order to “adequately address investor protection issues.” For further information about this, or other related topics, please contact us at (619) 298-2880, or at [info@jackolg.com](mailto:info@jackolg.com). ### Legal Tip Archive - [September 2011 (5)](https://resources.jackolg.com/archive/2011/09) - [April 2014 (5)](https://resources.jackolg.com/archive/2014/04) - [August 2014 (5)](https://resources.jackolg.com/archive/2014/08) - [September 2015 (5)](https://resources.jackolg.com/archive/2015/09) - [August 2011 (4)](https://resources.jackolg.com/archive/2011/08) - [October 2011 (4)](https://resources.jackolg.com/archive/2011/10) - [June 2012 (4)](https://resources.jackolg.com/archive/2012/06) - [July 2012 (4)](https://resources.jackolg.com/archive/2012/07) - [August 2012 (4)](https://resources.jackolg.com/archive/2012/08) - [October 2012 (4)](https://resources.jackolg.com/archive/2012/10) - [November 2012 (4)](https://resources.jackolg.com/archive/2012/11) - [January 2013 (4)](https://resources.jackolg.com/archive/2013/01) - [March 2013 (4)](https://resources.jackolg.com/archive/2013/03) - [April 2013 (4)](https://resources.jackolg.com/archive/2013/04) - [May 2013 (4)](https://resources.jackolg.com/archive/2013/05) - [June 2013 (4)](https://resources.jackolg.com/archive/2013/06) - [September 2013 (4)](https://resources.jackolg.com/archive/2013/09) - [October 2013 (4)](https://resources.jackolg.com/archive/2013/10) - [January 2014 (4)](https://resources.jackolg.com/archive/2014/01) - [February 2014 (4)](https://resources.jackolg.com/archive/2014/02) - [March 2014 (4)](https://resources.jackolg.com/archive/2014/03) - [May 2014 (4)](https://resources.jackolg.com/archive/2014/05) - [June 2014 (4)](https://resources.jackolg.com/archive/2014/06) - [July 2014 (4)](https://resources.jackolg.com/archive/2014/07) - [December 2014 (4)](https://resources.jackolg.com/archive/2014/12) - [January 2016 (4)](https://resources.jackolg.com/archive/2016/01) - [November 2011 (3)](https://resources.jackolg.com/archive/2011/11) - [December 2011 (3)](https://resources.jackolg.com/archive/2011/12) - [January 2012 (3)](https://resources.jackolg.com/archive/2012/01) - [February 2012 (3)](https://resources.jackolg.com/archive/2012/02) - [April 2012 (3)](https://resources.jackolg.com/archive/2012/04) - [May 2012 (3)](https://resources.jackolg.com/archive/2012/05) - [September 2012 (3)](https://resources.jackolg.com/archive/2012/09) - [December 2012 (3)](https://resources.jackolg.com/archive/2012/12) - [July 2013 (3)](https://resources.jackolg.com/archive/2013/07) - [August 2013 (3)](https://resources.jackolg.com/archive/2013/08) - [November 2013 (3)](https://resources.jackolg.com/archive/2013/11) - [December 2013 (3)](https://resources.jackolg.com/archive/2013/12) - [January 2015 (3)](https://resources.jackolg.com/archive/2015/01) - [February 2015 (3)](https://resources.jackolg.com/archive/2015/02) - [March 2015 (3)](https://resources.jackolg.com/archive/2015/03) - [July 2015 (3)](https://resources.jackolg.com/archive/2015/07) - [August 2015 (3)](https://resources.jackolg.com/archive/2015/08) - [November 2015 (3)](https://resources.jackolg.com/archive/2015/11) - [February 2016 (3)](https://resources.jackolg.com/archive/2016/02) - [March 2012 (2)](https://resources.jackolg.com/archive/2012/03) - [February 2013 (2)](https://resources.jackolg.com/archive/2013/02) - [October 2014 (2)](https://resources.jackolg.com/archive/2014/10) - [November 2014 (2)](https://resources.jackolg.com/archive/2014/11) - [April 2015 (2)](https://resources.jackolg.com/archive/2015/04) - [May 2015 (2)](https://resources.jackolg.com/archive/2015/05) - [June 2015 (2)](https://resources.jackolg.com/archive/2015/06) - [October 2015 (2)](https://resources.jackolg.com/archive/2015/10) - [December 2015 (2)](https://resources.jackolg.com/archive/2015/12) - [July 2011 (1)](https://resources.jackolg.com/archive/2011/07) - [September 2014 (1)](https://resources.jackolg.com/archive/2014/09) see all #### News - [Legal Tips](http://www.jackolg.com/News-Room/) - [Publications](http://www.jackolg.com/News-Room/Publications.shtml) - [Blog](http://www.jackolg.com/blog/) [Email Us For A Response](http://www.jackolg.com/Contact.shtml) #### How Can We Help? 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