Tag: Equity Services

Equity Services, Inc. of Montpelier, Vt. is a broker/dealer that was fined $50,000 by FINRA for failure to conduct proper due diligence in accordance with Regulatory Notice 10-22 and ordered to pay nearly $164,000 in restitution to customers who sustained losses by investing in the private placements in which Equity Services failed to obtain sufficient due diligence. Coral Capital Partners takes a look at the FINRA news release and the other firms that were sanctioned.

A Look at the Penalties for Broker/Dealer Failure to Obtain Due Diligence Under FINRA 10-22

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.