What are Some of FINRA’s Disciplinary Actions? When the broker dealer fails to meet the requirements of a reasonable investigation, they are subject to disciplinary action. That is not to say that they have failed to do any type of investigation. In fact, many perform a general or cursory investigation,... read more →
Jan
12
Jan
11
One area that continues to be of concern for the Financial Industry Regulatory Authority (FINRA) is private placement securities. In 2014, FINRA released a Regulatory and Examination Priorities Letter that details these concerns. In essence, it is a continuing priority for FINRA to supervise the activities of private placement offerings... read more →
Jan
10
In performing due diligence on securities offerings, broker dealers must examine numerous criteria. The goal is not only to provide an adequate investigation, but also to match the offering with the right investor. Not every solid security will be right for every investor. It is not simply enough to ensure... read more →
Jan
09
Broker dealers must follow certain policies and procedures in examining securities. This obligation is a requirement of the Financial Industry Regulatory Authority (FINRA) Notice 10-22 for all Regulation D offerings. Supervision Broker dealers must provide adequate supervision of all activities that are related to Regulation D offerings. To ensure supervision... read more →
Jan
08
One of the tasks of a broker dealer in a due diligence investigation is to find any red flags for either the issuer or the security offering. Overlooking these red flags could be detrimental to the broker dealer if the offering should fail. The Importance of a Red Flag to... read more →
Jan
01
Firms and broker dealers have often been penalized with fines and suspension for failing to provide an adequate due diligence review of a security offering. Many times, the issue is not a lack of information or a failure to go through the process of due diligence, but not verifying the... read more →