New SEC Rule 506(c) Allows General Solicitation as Long as “Purchasers” are “Accredited Investors”

The Securities and Exchange Commission has published its final rules eliminating the prohibition against “general solicitation”. It created a new section to Rule 506, Rule 506(c) which provides that an exemption from the registration requirements is available even if an issuer uses general solicitation so long as all “purchasers” are “accredited investors”. The SEC has…