On July 21, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) was signed into law. While the sweeping legislation is primarily aimed at large financial institutions that are deemed to be systemically important, smaller financial institutions and nonfinancial institutions are also affected in significant ways, including, by way of example, the Dodd-Frank Act’s impact on private securities offerings. This article first discusses the new accredited investor standard that was mandated by the Dodd-Frank Act. Next, this article discusses the proposed Securities and Exchange Commission (“SEC”) rules that will, as required by the Dodd-Frank Act, disqualify certain “bad actors” from relying on the frequently used securities registration exemption provided by Rule 506 of Regulation D.

_{This content is made available for educational purposes only and to give you general information and a general understanding of the law, not to provide specific legal advice. By using this content, you understand there is no attorney-client relationship between you and the publisher. The content should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.}