230.260—Insignificant deviations from a term, condition or requirement of Regulation A.
(a)
A failure to comply with a term, condition or requirement of Regulation A will not result in the loss of the exemption from the requirements of section 5 of the Securities Act for any offer or sale to a particular individual or entity, if the person relying on the exemption establishes:
(1)
The failure to comply did not pertain to a term, condition or requirement directly intended to protect that particular individual or entity;
(2)
The failure to comply was insignificant with respect to the offering as a whole, provided that any failure to comply with paragraphs (a), (b), (d) (1) and (3) Of § 230.251 shall be deemed to be significant to the offering as a whole; and
(3)
A good faith and reasonable attempt was made to comply with all applicable terms, conditions and requirements of Regulation A.
(b)
A transaction made in reliance upon Regulation A shall comply with all applicable terms, conditions and requirements of the regulation. Where an exemption is established only through reliance upon paragraph (a) of this section, the failure to comply shall nonetheless be actionable by the Commission under section 20 of the Act.