Due Diligence

Blog articles and articles written for various other publications written by Coral Capital Partners on the topic of due diligence. In our blog on due diligence we look at lessons learned from various projects and clients, as well as enforcement actions taken by the SEC and how obtaining basic due diligence on a company could have averted many problems. With the recent regulatory changes proper due diligence has taken on greater importance than ever.

FINRA’s Sanction of Broker/Dealers for Lack of Conducting Reasonable Due Diligence

FINRA recently issued Regulatory Notice 10-22 which requires broker/dealers to conduct or obtain reasonable due diligence on companies whose securities they sell in private placements through the Regulation D exemption. Coral Capital Partners looks at recent FINRA sanctions of broker/dealers, and their personnel for failure to conduct a reasonable due diligence review of companies for which they raised funds for through private placement sales under Regulation D.