Tag: FINRA Regulatory Notice 10-22

In April of 2010, the Financial Industry Regulatory Authority issued Regulatory Notice 10-22, FINRA 10-22, which requires broker-dealers to obtain independent, third party due diligence on all companies for which they are conducting a private placement or Regulation D Offering. Regulatory Notice 10-22 specifies the key areas that FiNRA requires for a proper due diligence review. Failure to obtain a due diligence review in accordance with FINRA 10-22 creates a significant liability for broker/dealers with respects to any potential litigation when a client suffers a loss in a private placement.

Coral Capital Announces Relationship with TechPerts, Inc.

Coral Capital Partners is proud to announce its collaborative relationship with TechPerts, a firm focused on providing technology consultants and experts witnesses to law firms and other interested parties. This is a significant expansion of Coral Capital Partners due diligence, acquisition searches, and valuation services.

FINRA Rule 5123 – Private Placement Filing Requirements

Coral Capital Partners takes a look at recent FINRA Regulatory Notice 12-40 and the underlying FINRA Rule 5123, which requires broker/dealers that participate in the private offerings of issuer securities to file a copy of the private placement memorandum and other offering documents with FIRNA. We also look at the exemptions to this requirement, and were we see areas of risk for broker/dealers participating in private placements. We also look at how we see this tying in with FINRA Regulatory Notice 10-22.

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.