FINRA Provides Limited Relief Regarding Requirement to Transmit Funds in Connection with Sales of Securities on Subscription-Way Basis (Reg. Notice 15-23)

FINRA issued a regulatory notice providing limited relief as to the requirement to promptly transmit a customer check received in connection with sales of securities on a subscription-way basis for the purpose of completing suitability reviews.

The limited relief will allow firms to hold a customer check payable to an issuer or appropriate third-party payee acting on behalf of the issuer for up to seven business days from the date that an office of supervisory jurisdiction receives a complete and correct application package for the purchase of securities on a subscription-way basis.

Certain conditions must be satisfied in order for this limited relief to be granted, which are detailed in the regulatory notice.

See: Regulatory Notice 15-23.