FINRA Proposes To Add Retail Communications To Private Placement Filing Requirements

FINRA proposed to amend its private placement filing requirements to include retail communications.

The proposal would amend FINRA Rule 5122 ("Private Placements of Securities Issued by Members") and FINRA Rule 5123 ("Private Placements of Securities") to require that members who offer such securities file retail communications concerning the offering. FINRA said "examples of these retail communications can include web pages that promote the offering, slide presentations, pitch decks, one-page "'teasers,' fact sheets, sales brochures, executive summaries, and investor packets."

Comments on the proposal must be submitted no later than 21 days after its publication in the Federal Register.

Primary Sources

1. FINRA Notice of Filing and Immediate Effectiveness: Proposed Amendments to FINRA Rules 5122 (Private Placements of Securities Issued by Members) and 5123 (Private Placements of Securities) That Would Require Members to File Retail Communications

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