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.
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.
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Welcome to the Coral Capital Partners blog. This where we have a chance to interact with the public and discuss items we feel are of significance or importance to the business and capital markets community. It gives us a chance to talk about things that we feel are important or just simply interesting. A majority of the topics that we will discuss will be related to the core services that we provide. We hope you enjoy our blog and find the information contained useful and informative.