To implement Section 201(a) of the JOBS Act, the SEC promulgated Rule 506(c) to eliminate the prohibition on using general solicitation under Rule 506 where all purchasers of the securities are accredited investors and the issuer takes reasonable steps to verify that the purchasers are accredited investors. Rule 506(b) is part of Regulation D, which is described more fully below.

Under Rule 506(c), issuers may offer securities through means of general solicitation, provided that: f all purchasers in the offering are accredited investors, f the issuer takes reasonable steps to verify their accredited investor status, and f certain other conditions in Regulation D are satisfied.

Regulation D using Rules 504, 505 and 506 to Raise Capital Regulation D contains Rules 504, 505 and 506, which establish exemptions from Securities Act registration. Rule 506(b) provides objective standards that a company can rely on to meet the requirements of the Section 4(a)(2) non-public offering exemption. The only filing requirement under each of these exemptions is the requirement to file a notice on Form D with the SEC.

An issuer that is disqualified from these rules may still qualify to apply for a waiver of disqualification. See