Glossary

Regulation D 506(c)

An SEC exemption permitting general solicitation of accredited investors for private securities offerings.

Regulation D Rule 506(c) is an SEC exemption that permits general solicitation and advertising of private securities offerings (hedge funds, private equity, real estate funds) — but only to accredited investors. The issuer must take 'reasonable steps to verify' accredited investor status, which can include reviewing tax returns, brokerage statements, or third-party verification letters from CPAs/attorneys. 506(c) was created by the JOBS Act in 2013 and has steadily replaced 506(b) for funds wanting to use marketing. Empire325 builds 506(c) marketing programs combining content marketing, paid acquisition, and investor verification workflows for hedge funds and asset managers.

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