All terms

Glossary

Reg D Rule 506(c)

Regulation D, Rule 506(c)

A US exemption that lets issuers raise capital from verified accredited investors, including with general solicitation.

Rule 506(c) of Regulation D under the Securities Act lets an issuer raise an unlimited amount from accredited investors and publicly solicit the offering — provided the issuer takes reasonable steps to verify that every investor is accredited.

Self-certification by checkbox is not sufficient under 506(c); the issuer is responsible for verification. The deal manager is the issuer; software that merely helps structure the offering, charges a flat fee, and never handles funds is not acting as a broker-dealer.

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