On September 23, 2013, the SEC's Office of Investor Education and Advocacy issued an investor alert on advertising for investment opportunities in certain unregistered securities offerings. The alert informs individual investors of verification of investor status in a Rule 506(c) offering. In particular, the alert highlights issues and risks for investors to consider when investing in a private placement.

On the same day, the Office of Investor Education and Advocacy also issued an investor bulletin on accredited investors. The bulletin explains to individual investors how to determine if an individual qualifies as an accredited investor. In particular, the bulletin offers examples of calculating individual net worth.

To learn more about general solicitation and advertising in unregistered offerings generally, see Practice Note, JOBS Act: Regulation D and Rule 144A General Solicitation Summary.

To learn more about who qualifies as an accredited investor, see Practice Note, Section 4(a)(2) and Regulation D Private Placements: Accredited Investors.

To learn more about verification of accredited investor status in Rule 506(c) offerings, see Practice Note, Section 4(a)(2) and Regulation D Private Placements: Guidance on Reasonable Steps to Verify Accredited Investor Status.