MFA Submits Additional Comments Regarding FINRA Rule 5123 on Private Placement of Securities

The Managed Funds Association ("MFA") submitted comments to the SEC in response to the notice of FINRA amendments to Rule 5123 ("Private Placement of Securities"). The amendments would require broker-dealers to provide additional information about an issuer to FINRA, along with a private placement memorandum or other disclosure document, in connection with certain private placements conflicts.

The MFA previously submitted comments regarding Rule 5123 which expressed concerns about the scope of FINRA's amendments, the authority of FINRA in implementing the rule, and the expedited approval process of the rule. In the recent comment letter, the MFA requested that FINRA respond to those previous comments, and recommended that the SEC "disapprove of the proposed amendments to Rule 5123" or, at a minimum, suspend the amendments and institute proceedings to determine whether the proposed rule should be approved.

See: MFA Comment Letter.
Related news: MFA Submits Comments on FINRA Rule 5123 Amendments (July 23, 2013); FINRA Proposed Rule Change to Rule 5123 (Private Placements of Securities) (June 21, 2013).