Alert April 27, 2010

FINRA Reminds Broker-Dealers of Due Diligence Obligations in Regulation D Offerings

FINRA issued Regulatory Notice 10-22 to remind its member broker-dealers of their obligation to conduct a reasonable investigation of the issuer and the securities offered when they make a recommendation regarding an offering under Regulation D of the Securities Act of 1933.  Among other things, the Regulatory Notice includes a list of practices that FINRA has observed firms adopting to meet their due diligence responsibilities.