Regulation D Offerings and Private Placements, CLE course for lawyers
Regulation D Offerings and Private Placements
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Why You Should Attend


Much of what practitioners know about private placements is obsolete.


Every lawyer engaged in capital-raising must have current expertise in private placements and Regulation D, and understand the expanded liability risks at the federal and state and regulatory levels. SEC enforcement and FINRA oversight efforts reveal an increased number of prosecutions and enforcement actions involving private placements


Most capital in the U.S. is raised by private placements, by entities ranging from small start-ups to the largest international public companies, angel investors, venture capital firms, investment funds, and real estate vehicles. Much of what lawyers have understood about private placements was upended in 2012 by the JOBS Act (Jumpstart Our Business Startups), which many have called the most radical amendment to federal securities regulation since the Securities Exchange Act of 1934. The Securities and Exchange Commission has adopted rules, pursuant to the JOBS Act, to permit general solicitation and public advertising in private offerings limited to accredited investors and it has accommodated crowdfunding for small investments entirely outside the accredited investor regime. Further, the JOBS Act has provided a new exemption, called ‘Regulation A+,” for offerings up to $50 million.


Of extraordinary significance, also, is the JOBS Act provision that raises the threshold for mandatory registration under Section 12(g) of the Securities Exchange Act of 1934 from 500 to 2,000 shareholders of record, thereby creating an entirely new creature …the very large private company funded through the use of public advertising.


Our panelists will analyze the SEC’s rulemaking and will discuss how market practice is responding to the rulemaking, including discussion of the following considerations:

How will the new Rule 506(c), permitting general solicitation in some Reg D offerings, be used in practice? How will issuers seek to verify whether investors are accredited?

Is Rule 506(c) the “real” crowdfunding exemption for “accredited crowdfunding”?

Will general solicitation mean that a greatly increased pool of companies will become private placement issuers?

Who will use crowdfunding and will it really work?

What are the liability risks to issuers and counsel in offerings conducted by general advertising?

How are the states responding to the new federal rules?


In this highly successful and comprehensive course, being offered for the 32nd time in 2014, our panel of experienced practitioners and regulators presents a review of current federal and state laws and regulations relevant to private placements, and provides practical advice for handling private placements.

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What You Will Learn

The course provides more than 13 hours of instruction in current and developing issues in private placements as a framework for a practical discussion of how private placements will work in the new regulatory environment.

Our panel will also address:


the fundamentals of private placements and alternatives to private placements

ways to avoid the most common mistakes and sources of liability of both issuers and lawyers in the conduct of offerings

fixing a broken offering, and what to do when an offering cannot be fixed

dealing with difficult disclosure issues

the lawyer’s due diligence obligations and risks of liability

special issues applicable to private investment funds

private placements in mergers and acquisitions

expanding state regulatory and enforcement efforts, and NASAA coordination

expanding FINRA regulation

exit strategies and resales of restricted and control securities

special issues for employee compensation plans.


The expert faculty includes current and former SEC and state regulators; private practitioners; and Professor J. Williams Hicks, the author of the leading treatise on private placements and restricted securities. They offer an overview, a sense of perspective, and an understanding of the developments and concerns of those undertaking private placement offerings. Substantial time is reserved for the panel to respond to written questions submitted by the registrants.

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Who Should Attend

This accredited continuing legal education program from ALI CLE is designed for lawyers whose clients will be raising capital in the new regulatory environment, experienced securities practitioners who want to hear discussions of current practice and regulation in private placements; law firm associates who want to obtain a firm grounding in the laws and regulations applicable to private placements; in-house counsel for companies and their principals planning to raise capital; compliance officers an in-house counsel of financial firms that engage in private placements; anyone engaged in an effort to raise capital for new, start-up, development stage businesses including entrepreneurs, angel financiers/investors, venture capitalists, business finders, bankers; and anyone determined to create more jobs in the U.S.

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Planning Chairs

Alan J. Berkeley, K&L Gates LLP, Washington, D.C., London, and Sao Paulo (also on faculty)

Robert B. Robbins, Pillsbury Winthrop Shaw Pittman LLP, Washington, D.C.; Adjunct Professor of Securities Law, University of Maryland Law School (also on faculty)

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Hon. Denise Voigt Crawford,Securities Consultant, Austin Texas; former
Commissioner, Texas State Securities Board; and former President, North American Securities Administrators Association

Martin P. Dunn, Morrison & Foerster LLP, Washington, D.C.; former Deputy Director, Division of Corporation Finance, U.S. Securities and Exchange Commission

Sebastian Gomez,Chief, Office of Small Business Policy, Division of Corporation Finance, U.S. Securities and Exchange Commission, Washington, D.C.

J. William Hicks, C. Ben Dutton Professor Emeritus of Law, Maurer School of Law, Indiana University-Bloomington

Stephen J. Korotash, K&L Gates LLP, Dallas; former Associate Director, Division of Enforcement, U.S. Securities and Exchange Commission

Hugh H. Makens, Warner Norcross & Judd LLP, Grand Rapids, Michigan

Kimberly V. Mann, Pillsbury Winthrop Shaw Pittman LLP, Washington, D.C.

David B.H. Martin, Covington & Burling LLP, Washington, D.C.; former Director, Division of Corporation Finance, U.S. Securities and Exchange Commission

Joseph E. Price, Senior Vice President of Corporate Financing and Advertising Regulation, Financial Industry Regulatory Authority, Inc. (FINRA), Washington, D.C.

Wayne G. Souza, General Counsel and Executive Vice President, Law, Walton International Group (USA), Inc., Scottsdale, Arizona

Annemarie Tierney, Executive Vice President, Legal Affairs and General Counsel, SecondMarket Holdings, Inc., New York


ALI CLE Staff Attorney: Kevin O’Connor (

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Program Schedule

(All times are Pacific Time.)

Thursday, March 13, 2014

8:00 a.m. Registration and Continental Breakfast

8:55 a.m. Welcome and Announcements – ALI CLE Staff


Webcast Segment A – The Private Placement Exemption and Private Investment Funds

9:00 a.m. Introductory Remarks and Background — Mr. Berkeley

9:10 a.m. Conditions and Mechanics of the Private Placement Exemptions: The Existing Rules and the SEC's Proposed Changes — Messrs. Dunn, Martin, and Robbins

Summary of the registration exemptions, the changes made by the JOBS Act and amendments to Reg D; general solicitation and public advertising in Reg D offerings; CD&I guidance from te SEC staff; advantages and disadvantages of the available exemptions; the relationship with state securities laws; key concepts and requirements; disclosure and delivery of offering materials; the "innocent and immaterial" defense; integration and aggregation issues and Rule 155; private offerings by public companies

10:00 a.m. Networking and Refreshment Break

10:15 a.m. Identifying and Soliciting Investors in a World of General Solicitation and Public Advertising and Crowdfunding; Broker-Dealers, Intermediaries, Portals,  and Finders Messrs. Berkeley, Dunn, and Robbins and Ms. Tierney

General solicitation and advertising under the JOBS Act, and limitations on general solicitation and advertising in offerings not covered by the JOBS Act; agents, finders, and broker-dealers; pre-existing relationships and the “immaculate offeree”; the law firm as “finder”; dealing with confidentiality commitments and information disparities (“big boy letters”); coordination of Reg D and Reg S offerings; activities of offshore offerors; Rule 144A offerings.

11:00 a.m. SEC Regulatory Perspectives and Initiatives; Reg A+ and Crowdfunding — Messrs. Berkeley, Dunn, Martin, and Robbins and Ms. Tierney

Further explanation and discussion of the SEC's Regulation D revisions, proposals, and issues; Section 12(g) and the emergence of the very large private company; Regs A and A+ and crowdfunding.

11:45 a.m. Questions and Answers

12:00 noon Lunch Break


Webcast Segment B – Preparing Offering Materials: Blue Sky Practice

1:30 p.m. FINRA Regulatory Perspectives; The New PPM Filing Requirements — Messrs. Price and Souza

FINRA’s new filing requirements for private placements, and FINRA positions on broker-dealers’ due diligence and other obligations; FINRA registration and regulation requirements for crowdfunding intermediaries and portals; expanded liability risks for broker-dealers and crowdfunding portals and intermediaries

2:30 p.m. Networking and Refreshment Break

2:45 p.m. Blue Sky Practice — Professor Crawford and Mr. Makens

How to identify and solve blue sky issues relating to a private offering; how the states are responding to general solicitation and public advertising in offerings under Rule 506 (c) and crowdfunding initiatives; when state and federal broker-dealer registration is required; the most common sources of exposure to enforcement actions or civil liability and how to avoid them; joint or parallel enforcement initiatives by the states; the role of NASAA; the efforts by some states to "re-regulate" private placements; the use of finders and other "consultants"

4:00 p.m. Questions and Answers

4:30 p.m. Adjournment for the Day; Networking Reception for Registrants and Faculty


Friday, March 14, 2014

8:30 a.m. Networking Session and Continental Breakfast


Webcast Segment C – Liability and Ethical Issues in Private Placements

9:00 a.m. Federal and State Enforcement Programs and Developments — Professor Crawford and Messrs. Korotash and Makens

Recent developments in federal and state enforcement actions relating to private offerings

9:45 a.m. Civil Liability and the Concept of Materiality; Recent Developments — Messrs. Berkeley and Martin and Professor Hicks

The most common sources of liability of issuers, underwriters, sponsors, promoters, lawyers, accountants, and finders; attorney liability; developments in aiding and abetting and the “bespeaks caution” doctrine; case law developments in the concept of materiality

10:30 a.m. Networking and Refreshment Break

10:45 a.m. Ethical and Legal Responsibilities of Counsel; Due Diligence — Messrs. Makens, Martin, and Robbins

Defining the due diligence obligations of counsel: How much due diligence is enough? Is due diligence different for publicly advertised private placements or for crowdfunding offerings?  Ethical issues relating to conduct of offerings and disclosure of client misconduct.

11:45 a.m. Questions and Answers

12:00 noon Lunch Break


Webcast Segment D – Resales of Restricted Securities, Contingency Offerings, Offerings to Employees, Rescission Offers, and Special Topics

1:30 p.m. Avoiding Liability in Closings of Contingency Offerings — Mr. Robbins

Most private offerings and crowdfunding offerings are contingency (all-or-none or part-or-none) offerings.  Substantial liability risks lurk behind those contingencies.  Rules 10b-9 and 15c2-4; purchases and loans by the issuer or underwriter to meet the contingency; recent case law, SEC interpretations, and FINRA enforcement; special disclosure and structuring issues; how to structure contingency offerings to lessen the risk of liability

2:00 p.m. Resales of Restricted Securities: Rule 144, Section 4(1-1/2), and Rule 144A; PIPE Transactions — Messrs. Berkeley, Dunn, and Robbins and Professor Hicks

Resales and transfers of restricted securities under Rule 144 and Rule 144A; interpretation of “Section 4(1-1/2)”; resales by affiliates; removal of legends on restricted stock; corporate desk-drawer exchanges and matching services; conduit transactions ("gypsy swaps"); the future of PIPE transactions and other developing structures

2:45 p.m. Networking and Refreshment Break

3:00 p.m. Private Offerings by Serial Syndicators and Private Investment Funds — Ms. Mann and Mr. Souza

Special issues relating to hedge funds and other private investment funds; use of general solicitation and public advertising in private investment funds; exemptions from the Investment Company Act of 1940 and the consequences of lack of an exemption

3:45 p.m. Special Topics: Offers to Employees under Rule 701; Use of Private Offerings in Mergers and Acquisitions — Mr.  Robbins

Offerings to employees under Rule 701; use of Rule 701 for stock option, stock bonus, employee stock purchase, and other types of employee benefit plans; the effect of general solicitation on the use of private offerings in mergers and acquisitions

4:30 p.m. Questions and Answers

4:45 p.m. Adjournment for the Day


Saturday, March 15, 2014

8:15 a.m. Networking Session and Continental Breakfast

8:45 a.m. Potpourri: Regulation D in Practice; Questions and Answers * — Professor Hicks; Messrs. Berkeley, Dunn, Makens, Martin, Price, Robbins, and Souza and Mss. Crawford and Mann

(Based on the interests of the registrants) Topics may include: Internet trading platforms for restricted securities; rescission offers; installment payments in private offerings; special problems of the large private company; inadvertent public companies; hedge fund  private placements; special problems of private "bridge financings"; offshore offerings and the relationship to Regulation S; domestic offerings by offshore issuers; participation by issuer's counsel in the selling process; "Plain English" in private placements; disclosure in offerings made only to accredited investors; use of projections and clients; responses to fact patterns and questions from registrants

11:00 a.m. Adjournment

* This segment not webcast or recorded

Total 60-minute hours of instruction: 13.5, including one hour of ethics

Suggested Prerequisite: Some experience in legal practice in subject matter

Educational Objective: Maintenance of professional competence as a practitioner; provision of information on recent legal developments; development of proficiency in performance of intricate and complex legal tasks within a narrow area

Level of Instruction: Advanced

Click Here for MCLE Credit Information

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Here's what registrants have said about this course:

"This was clearly the best seminar that I have attended in the last 38 years. All of the speakers were well experienced and brought a wealth of their experience and intellect to their presentations. I particularly enjoyed hearing about a number of practical issues that I deal with daily in my practice. May attend this in person next year! Very well done!"


"An EXCELLENT program."



"Great CLE and totally relevant and useful for my practice."

"Very good program. Thank you!"

"This excellent course has been going successfully for 30 years and is a must do for any lawyer who practices securities law.  I plan to never miss one." Robert L. Sonfield, Jr.

"This continues to be the best legal seminar that I have attended during, now 45 years of practicing law." Patrick C. Clary, Patrick C. Clary Chartered

"Great for maintaining competency levels year in and year out!"

"Outstanding.  The course never fails to provide me with useful information to improve my practice." Norman T. Reynolds

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