FINRA Issues Private Placement Offering Guidelines

Law360, New York (April 21, 2010, 2:18 PM EDT) -- Following the institution of several enforcement actions involving private placement offering violations in recent months, the Financial Industry Regulatory Authority has released guidelines outlining brokerage firms' obligations in offering private placements to investors.

FINRA Regulatory Notice 10-22, which the agency unveiled Tuesday, reinforces and details a broker-dealer's obligation to conduct a reasonable investigation of an issuer and its securities that it recommends in private placement offerings, which are made pursuant to Regulation D of the Securities Exchange Act of 1933.

The notice alerts firms to red...
To view the full article, register now.