Securities Lawyer's Deskbook
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General Rules and Regulations
under the
Securities Act of 1933

Rule 172 -- Delivery of Prospectuses

  1. Sending confirmations and notices of allocations. After the effective date of a registration statement, the following are exempt from the provisions of section 5(b)(1) of the Act if the conditions set forth in paragraph (c) of this section are satisfied:

    1. Written confirmations of sales of securities in an offering pursuant to a registration statement that contain information limited to that called for in Rule 10b-10 under the Securities Exchange Act of 1934 and other information customarily included in written confirmations of sales of securities, which may include notices provided pursuant to Rule 173; and

    2. Notices of allocation of securities sold or to be sold in an offering pursuant to the registration statement that may include information identifying the securities (including the CUSIP number) and otherwise may include only information regarding pricing, allocation and settlement, and information incidental thereto.

  2. Transfer of the security. Any obligation under section 5(b)(2) of the Act to have a prospectus that satisfies the requirements of section 10(a) of the Act precede or accompany the carrying or delivery of a security in a registered offering is satisfied if the conditions in paragraph (c) of this section are met.

  3. Conditions.

    1. The registration statement relating to the offering is effective and is not the subject of any pending proceeding or examination under section 8(d) or 8(e) of the Act;

    2. Neither the issuer, nor an underwriter or participating dealer is the subject of a pending proceeding under section 8A of the Act in connection with the offering; and

    3. The issuer has filed with the Commission a prospectus with respect to the offering that satisfies the requirements of section 10(a) of the Act or the issuer will make a good faith and reasonable effort to file such a prospectus within the time required under Rule 424 and, in the event that the issuer fails to file timely such a prospectus, the issuer files the prospectus as soon as practicable thereafter.

    4. The condition in paragraph (c)(3) of this section shall not apply to transactions by dealers requiring delivery of a final prospectus pursuant to section 4(3) of the Act.

  4. Exclusions. This section shall not apply to any:

    1. Offering of any investment company registered under the Investment Company Act of 1940;

    2. Offering of any business development company as defined in section 2(a)(48) of the Investment Company Act of 1940;

    3. A business combination transaction as defined in Rule 165(f)(1); or

    4. Offering registered on Form S-8.

Regulatory History

70 FR 44722, 44808, Dec. 1, 2005

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