The Securities Litigation Expert Blog

FINRA Focusing on Private Placements

Posted by Jack Duval

Sep 9, 2013 5:54:14 AM

FINRA has been focusing on new private placements this summer, Reuters reports here.  Recent actions are the result of the new rules requiring the filing of private placements offering documents.

Recent changes to industry rules require brokerages to hand over private offering documents to FINRA within 15 days of the first sale. That makes it easier for the regulator to sniff out possible wrongdoing, said J. Bradley Bennett, FINRA's enforcement head, in an interview on Tuesday.

The regulator has received 1,900 offerings since December, 2012, when the rule took effect, Bennett said, who added that FINRA's staff has referred numerous concerns to its enforcement unit for review because of the new trove of information.

The shale bubble has also drawn focus:
Some red flags that can trigger a closer look by FINRA's enforcement team include offerings tied to fields that are the subject of a lot of hype, such as natural gas extraction, said Bennett

See our previous coverage of private placements here, here, and here.
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Topics: FINRA, Investment Advisors, private placements, litigation, investments, SEC, Compliance

Finra Annual Conference May 20-22 | Washington, D.C.

Posted by Jack Duval

Jan 13, 2013 5:16:16 AM

Finra has announced it's annual conference topics.  (Finra)  FYI, if you can't make it down to Washington, you can live stream it for $700 (for non-members).  (I have used the Finra streaming software before and it works well.)

Topics will include:

  • Anti-Money Laundering

  • Branch Office Inspections

  • Business Continuity Planning

  • Consolidated Audit Trail (CAT) and Large Trader Reporting

  • Cyber Security

  • Enforcement Developments

  • Ethics for Securities Attorneys

  • Examinations

  • Financial and Operational Considerations

  • Fraud Prevention

  • JOBS Act

  • Municipal Securities

  • Outside Business Activities

  • Private Placements

  • Retail Sales of Complex Products

  • Small Firm Compliance Practices

  • Social Media and Communications With the Public

  • Suitability

  • Supervision

  • Technology Priorities for Broker-Dealers


Detailed session descriptions can be found here.



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Topics: FINRA, streaming, private placements, litigation, arbitration, suitability, complex products, investments, supervision, Annual Meeting, Complex Investments, Compliance, Dodd-Frank Act, regulation., Complexity, education

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