October 27, 2020

Volume X, Number 301

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October 27, 2020

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October 26, 2020

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FINRA Issues Guidance on Public Offerings

On September 15, the Financial Industry Regulatory Authority (FINRA) issued guidance on public offerings, outlining the obligations of FINRA member firms under FINRA Rules 5110, 5121 and 2310. Among other things, FINRA members (1) must file documents and other information on a timely basis in connection with public offerings, (2) cannot participate if the underwriting terms and arrangements are unfair or unreasonable, (3) must prominently disclose the nature of any conflicts of interest and (4) if participating in the distribution of shares in a Direct Participation Program or an Unlisted Real Estate Investment Trust, must comply with additional compensation and disclosure requirements as described in FINRA Rule 2310.

The guidance is available here.

©2020 Katten Muchin Rosenman LLPNational Law Review, Volume X, Number 262
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About this Author

Michael T. Foley, Katten, Lawyer, Finance, FINRA, Chicago
Special Counsel

Michael Foley represents broker-dealers, investment advisers and other financial services industry participants with respect to a broad spectrum of legal and regulatory matters arising under the federal securities laws.

Michael has nearly 20 years of experience in private practice and in-house at both a large, full-service broker-dealer and at an online discount broker-dealer, advising broker-dealers and other financial institutions regarding compliance with the federal securities and commodities laws, and with the regulations of the US Securities and Exchange...

312-902-5452
Jack West Financial Attorney Katten
Associate

Jack West is an associate in the Financial Markets and Funds practice.

312-902-5463
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