Private Placements Becoming Much Riskier for Firms
Posted by williambyrnes on August 14, 2011
There may be an increased need for caution when offering the newest private placements to clients. FINRA and the SEC are actively examining private placements and the firms that sell them. And if the regulators believe that something is amiss, they won’t hesitate to impose severe fines on everyone involved in the sale. As part of its ongoing sweep of firms that sold interests in failed private placements, FINRA has issued sanctions against two firms and seven individual principals of those firms. FINRA accuses them of causing significant investor losses by failing to conduct a reasonable investigation before offering the private placements for sale to investors.
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This entry was posted on August 14, 2011 at 06:00 and is filed under Wealth Management. Tagged: Business, Dodd–Frank Wall Street Reform and Consumer Protection Act, Employment, Financial Industry Regulatory Authority, law, Private placement, Project On Government Oversight, U.S. Securities and Exchange Commission. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.