FINRA Regulatory Notice 10-22 requires broker/dealers to conduct or obtain reasonable due diligence on companies whose securities they sell in private placement transactions through the Regulation D exemption. Coral Capital Partners looks at the penalties FINRA recently imposed upon broker/dealers and registered individuals for their failure to conduct reasonable due diligence in accordance with FINRA Regulatory Notice 10-22 on companies for which they are raising funds through a private placement offering.
Tag: Askar Corporation
Askar Corp., a securities broker dealer established in 1977 and located in Bloomington, Minn., offers a wide range of securities products and services through its independent registered representatives. In addition to its services as a broker dealer, Askar Corp. and its affiliates provide a full range of financial services, investment advice, and consultation. In February of 2011, Askar Corp. consented to a fine of $45,000 by FINRA, which claimed it has failed to properly conduct due diligence in accordance with Regulatory Notice 10-22 concerning private placements placements conducted under Regulation D.