New SEC Rule, New Procedures For Banks

Law360 (November 30, 2007, 12:00 AM EST) -- The SEC has approved Rule 2290, proposed by the Financial Industry Regulatory Authority (“FINRA”) for its member firms in connection with the issuance of fairness opinions.

FINRA (formerly known as the National Association of Securities Dealers) originally proposed the rule in 2005 to address concerns that disclosures in fairness opinions might not inform shareholders sufficiently about potential conflicts of interest between the issuer of a fairness opinion and the parties to the transaction.

FINRA has announced that the rule will be effective Dec. 8.

While many...
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