Under the ___________ provision of Regulation A,the exemption is unavailable if the directors of the issuer have been subject to SEC disciplinary orders for securities fraud within the applicable time limit.

Question

Quizplus · Accepted Answer

The "bad boy" provision of Regulation A is a disqualification provision that prohibits the use of the exemption if the issuer or its directors, officers, or other relevant parties have been subject to certain prior disciplinary actions by the SEC or other regulatory agencies. Specifically, the exemption is unavailable if the issuer or its directors have been subject to SEC disciplinary orders for securities fraud within the applicable time limit. Therefore, choice A is the correct answer. The other choices (B, C, and D) are not relevant to this provision.

Under the ___________ Provision of Regulation A,the Exemption Is Unavailable