A broker-dealer settled FINRA charges for failing to use approved methods when estimating per-share Direct Participation Program and Real Estate Investment Trust valuation information distributed to customers.
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FINRA stated that marketing materials should reflect the fact that many private placements are either illiquid or speculative in nature, and should "balance claims of these investments' benefits by disclosing these risks."
A broker-dealer settled state charges for sales practice violations in connection with non-traded real estate investment trusts.
A FINRA hearing panel found that a broker-dealer intentionally misrepresented and omitted material information regarding sales of joint venture interests that constituted "securities."
FINRA provided guidance on its filing requirements and review procedures for firms that are participating in offerings under the recently amended Regulation A (popularly known as "Regulation A+"), which allows for lightly regulated offerings of up to $50 million in securities during a 12-month period. Specifically, FINRA provided guidance on its Corporate Financing Rules 5110 ("Corporate Financing Rule - Underwriting Terms and Arrangements"), 2310 ("Direct Participation Programs") and 5121 ("Public Offerings of Securities with Conflicts of Interest"), which require firms that participate in