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Rule 506
Securities and Exchange Commission (SEC) Regulation D, Rule 506 under the Securities Act of 1933 provides a federal exemption for limited offerings without regard to the dollar amount of the offerings. Sales, other than to accredited investors as defined by Regulation D, Rule 501 are limited to no more than 35 purchasers who either alone or with their purchaser representative have the knowledge and experience to evaluate the merits and risks of the offering.  Offers and sales of securities under Rule 506 can also be exempt in Kansas.

  • Citation: K.A.R. 81-5-15
  • Filing Requirement: A notice filing on Form D is required within 15 days after the first sale of securities in Kansas under Rule 506 unless conditions for another exemption are met. See Electronic Filing Depository (EFD) Announcement Effective December 15, 2014 for information regarding the electronic filing of Form D for Rule 506 offerings. Read more about EFD.
    • Important Notice: As of July 1, 2016 the Form D and fee must be filed through the EFD system as explained here and required by the Special Order issued May 18, 2016.
  • Filing Fee: 
    • The fee is $250 for a timely filing within 15 days after the first sale in Kansas.
    • The fee for late filing is the greater of $500 or one-tenth of one percent of the dollar value of the securities that were sold to Kansas residents before the date on which the Form D is filed up to a maximum late fee of $5,000 unless the Commissioner allows a lower fee for good cause shown.
  • Possible Other Exemption: Please note that under K.A.R. 81-5-15(c), a notice filing may not be required if the security being offered or the transaction is exempt under some other exemption, such as the Limited Offering exemption provided by K.S.A. 17-12a202(14).