FINRA Regulation of Broker-Dealer Due Diligence in Regulation D Offerings | Practical Law

FINRA Regulation of Broker-Dealer Due Diligence in Regulation D Offerings | Practical Law

This Note discusses broker-dealers' affirmative obligation to conduct a reasonable investigation when recommending securities sold in offerings exempt from SEC registration under Regulation D of the Securities Act of 1933. The Note explains the FINRA rules and broker-dealer specific interpretations of the securities laws that impose this obligation. The Note also provides guidance on broker-dealer reasonable investigations in light of the Financial Industry Regulatory Authority's Regulatory Notice 10-22 and related enforcement actions.

FINRA Regulation of Broker-Dealer Due Diligence in Regulation D Offerings

Practical Law Practice Note 4-507-0665 (Approx. 12 pages)

FINRA Regulation of Broker-Dealer Due Diligence in Regulation D Offerings

by Practical Law Corporate & Securities
MaintainedUSA (National/Federal)
This Note discusses broker-dealers' affirmative obligation to conduct a reasonable investigation when recommending securities sold in offerings exempt from SEC registration under Regulation D of the Securities Act of 1933. The Note explains the FINRA rules and broker-dealer specific interpretations of the securities laws that impose this obligation. The Note also provides guidance on broker-dealer reasonable investigations in light of the Financial Industry Regulatory Authority's Regulatory Notice 10-22 and related enforcement actions.