In the previous blog post, I began discussing the “bad actor” concept as it relates to Rule 506 private placements. In that post, I focused specifically on who the potential “bad actors” are, and what sort of “bad acts” would lead to that designation. In this blog post I am going to discuss four exceptions to disqualification. 1. Timing of the Disqualification Events.The “bad actor” disqualification rule became effective on September 23, 2013, and is a prospective rule. Therefore, only bad acts which occurred on or after that date are disqualifying events. It is important to note that it is the date of the conviction, suspension, or similar bad act (see my previous post here for the list of disqualifying “bad acts” which is important for timing purposes, rather than the date(s) of the conduct which resulted in the conviction, etc. Thus, any conviction, etc. occurring on or after September 23, 2013 is a…
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