Regulatory Outlook | 07.27.20
FINRA Advertising Rules Apply to Private Placements
FINRA has released a notice concerning private placement advertisements. Regulatory Notice 20-21 states that broker-dealer firms must ensure that private placement sales material complies with FINRA Rule 2210. This notice applies sales material prepared by the issuer, by another third party, or by the broker-dealer itself. The notice also says broker-dealers must ensure claims about the benefits of an investment are balanced with disclosure about the risks. In addition, FINRA says forecasts should include assumptions that they are based on and distribution rates must be used carefully.
Read the full article on Bloomberg Law.