FINRA Rule 2210 - It is Finally Here.

FINRA Rule 2210 - It is Finally Here. By Chuck Lowenstein, Senior Editor, Securities On Monday, February 4, 2013, member firms and their representatives enter an entirely new world of regulations regarding Communications With the Public. That is the day that the new FINRA Rule 2210 takes effect. This post will try to explain, in plain English, the basic changes and how they will affect any student planning on sitting for a FINRA exam on which the topic is covered. This is not a complete explanation – for that, refer to the blog specific to the course you will be… View the full article FINRA Rule 5123 – Providing Additional Investor Protection for Private Placement By William R. James, Senior Securities Editor This fairly straightforward rule went into effect December 3, 2012. I say straightforward because this rule may seem oddly reminiscent of what the SEC has been trying to do all along. It seeks to ensure that investors in private placements are provided with detailed information about the intended use of offering proceeds, the offering expenses and offering compensation. So in order to make it more likely that this goal is reached, each FINRA member that offers a security in a private placement must do one of two things: submit to FINRA a copy of any PPM, term sheet or any other offering document including any amended versions within 15 calendar days of the date of the first sale or, indicate to FINRA that no such documents were used. What’s nice about this 15 calendar day requirement is that it dovetails the filing requirement for issuers of Reg D securities! As you can see from item second bullet above, not all offerings may be required to have a PPM. There are plenty of exemptions. See the Kaplan Series 24 blog site for additional details. http://www.kfeducation.com/blog/detail/sec/2085