Avoiding Securities Advertising Pitfalls: A Legal Deep Dive for Syndicators and Fund Managers

In this episode, Kim Lisa Taylor sits down with Attorney Judith Villarreal to unpack the critical do's and don’ts of securities advertising. Whether you're a real estate syndicator or a fund manager raising capital under Regulation D, Rule 506(b) or 506(c), this conversation will help you avoid the common pitfalls that could land you in regulatory hot water. From misrepresentations and omissions to proper disclaimers and dangerous buzzwords, Judith shares practical advice on how to stay compliant when promoting your offering on websites, social media, newsletters, email campaigns, and more. Tune in to protect your reputation—and your deal. 

Chapters:

Introduction to Securities Advertising Compliance (00:00:02)

Krisha Young introduced the podcast focusing on raising capital legally and avoiding securities advertising pitfalls. Kim Lisa Taylor and Judith Villareal were presented as expert speakers on securities compliance.

Legal Risks and Compliance Requirements (00:01:46)

Judith Villareal shared her extensive experience in securities compliance, emphasizing the importance of proper advertising reviews and the risks of misleading statements that could attract regulatory attention.

Fundamental Rules of Securities Advertising (00:03:58)

Judith explained that advertisements must not be misleading or confusing, highlighting the different approaches between FINRA's specific rules and SEC's principles-based regime.

Consequences of Non-Compliance (00:06:07)

The speakers discussed potential penalties ranging from regulatory trouble to criminal prosecution, including the risk of having to rescind offerings and return investor money.

Marketing Language and Disclaimers (00:11:48)

The discussion covered prohibited terms and phrases in securities advertising, emphasizing the importance of accurate representation and proper disclaimers in all marketing materials.

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