Wall Street Faces New FINRA Disclosure Rules

Law360, New York (January 13, 2011, 1:23 PM EST) -- The Financial Industry Regulatory Authority is seeking to require financial companies to disclose all potential conflicts of interest when participating in private placement sales.

Under a proposal put forth by the self-regulatory organization Tuesday, FINRA would require brokerage houses to disclose when they are selling private placements in an affiliated company. The existing rule only requires the disclosure of potential conflicts when the broker-dealer or its parent company is issuing the private placement.

FINRA has opened the proposal up for public comment until March 14....
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