FINRA adds retail communications to private placement deposit requirements – Finance and Banking

FINRA adopted changes to private placement filing requirements to require members to file retail offering related communications.

Amendments to FINRA Rule 5122 (“Private Placements of Securities Issued by Members”) and FINRA Rule 5123 (“Private Placements of Securities”) require members offering such securities to file communications with detail concerning the offer. FINRA clarified that the changes do not apply to bids currently exempt from filing (for example, sales exclusively to institutional accounts).

The changes will take effect on October 1, 2021. Members will be required to file retail communications no later than the date that Rules 5122 and 5123 require a member to file private placement offering documents.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought on your particular situation.