SEC Extends Time to Consider FINRA Proposal on Shortening Debt Security Syndicate Account Settlement Times

The SEC extended to November 16, 2022, the period for consideration of a FINRA proposal to shorten the permitted syndicate account settlement timeframe for corporate debt offerings.

As previously covered, the proposal would implement a two-phased approach to settlement that would require syndicate managers to remit at least 70 percent of the gross amount due within the first 30 days of settlement, with any remaining balance paid within 90 days of settlement. The proposal applies to corporate debt offerings and would also harmonize FINRA rules regarding syndicate account settlement with current MSRB rules, which were amended in 2009.

Tags