# Disqualification of Felons and Other “Bad Actors” From Rule 506 Offerings
> **US Securities and Exchange Commission** · Final rule. · Published 2013-07-24 · Effective 2013-09-23 · 78 FR 44730
## Document
- **Document number:** 2013-16983
- **Category:** final-rule
- **Agency:** US Securities and Exchange Commission
- **Federal Register citation:** 78 FR 44730
- **CFR reference:** 17 CFR 200
- **Publication date:** 2013-07-24
- **Effective date:** 2013-09-23
- **Docket:** Release No. 33-9414
## Abstract

We are adopting amendments to our rules to implement Section 926 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 926 requires us to adopt rules that disqualify securities offerings involving certain "felons and other `bad actors"' from reliance on Rule 506 of Regulation D. The rules must be "substantially similar" to Rule 262 under the Securities Act, which contains the disqualification provisions of Regulation A under the Securities Act, and must also cover matters enumerated in Section 926 of the Dodd-Frank Act (including certain state regulatory orders and bars).

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2013/07/24/2013-16983/disqualification-of-felons-and-other-bad-actors-from-rule-506-offerings)
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