Practical Law Glossary Item 7-383-6598 (Approx. 3 pages)
Glossary
Qualified Independent Underwriter
Often abbreviated as QIU. An underwriter required to participate in an SEC-registered offering in which:
There is a conflict of interest under FINRA Rule 5121 (for example, when the issuer plans to use 5% or more of the offering proceeds to repay a loan extended by an affiliate of an underwriter).
The offering does not meet any of the conditions in FINRA Rule 5121(a)(1), which sets out types of offerings in which a QIU is not required even if a conflict of interest exists.
A QIU must:
Participate in the preparation of the registration statement and prospectus.
Exercise the usual standards of due diligence in respect of the registration statement and prospectus.