Private Placement Due Diligence: FINRA's on a rampage. What you need to do and know. Bill Singer

1 reply [Last post]
Anonymous's picture
Anonymous
broker4563's picture
Offline
Joined: 2009-03-03

If I understand this correctly, FINRA is taking the position that B/Ds cannot merely rely on representations in a PPM.  They have an obligation to perform a reasonable amount of additional research to ensure that there are no skeltons in the closet that would be helpful in making an investment decision?  Is that correct?  Or, as an example:  "We at Pegasus Brokerage have sold several deals brought by Shady Partners, and in the past we've had clients lose quite a bit of money with them.  None of that is mentioned in this PPM, since it is a different operating entity, but this is material information that we thought you might want to know when making an investment decision."  (Correct or not?) 

Please or Register to post comments.

Industry Newsletters
Investment Category Sponsor Links

 

Careers Category Sponsor Links

Sponsored Introduction Continue on to (or wait seconds) ×