There are several items that seemed noteworthy here. First, this is at least the second AWC in recent months that referenced Regulatory Notice 10-22 (April 20, 2010) and the obligation, in connection with private placements, to conduct a reasonable investigation of the issue and the recommended securities. (See .) More importantly, as pointed out by FINRA, this investigation cannot rely solely upon the issuer for information but must include an investigation that independently verifies the…
When the contingency offering minimum was lowered from $1 million to the lesser of $900,000 or the price of the asset to be purchased with the offering proceeds, the firm sought and obtained from the investors signed subscription confirmation agreements whereby the investors agreed to the lowered minimum offering amount.
In light of the AWC, it is clear that FINRA did not think this met the terms of , which requires a prompt refund of any consideration paid in the event the original…
The new rule amends NMS ("Minimum Pricing Increment") to establish two minimum pricing increments consisting of (i) a minimum pricing increment of $0.005 for NMS stocks that have a "time weighted average quoted spread" ("TWAQS") during the immediately prior "evaluation period" of $0.015 or less and (ii) $0.01 for all other NMS stocks. The term "time weighted average quoted spread" means the average dollar value difference between the National Best Bid ("NBB") and National…
As stated in the AWC, the investment products at issue, (i.e., syndicate preferred stocks, closed-end funds ("CEFs") and medium-term notes ("MTNs")), are generally purchased for their income features and held long-term.
In this case, FINRA found that the firm was a member of the selling syndicate for each of these products and typically received a selling concession from the issuer of 2 percent for preferred stock, and between 1 percent and 2 percent for CEFs and MTNs. FINRA also…
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There are several items that seemed noteworthy here. First, this is at least the second AWC in recent months that referenced Regulatory Notice 10-22 (April 20, 2010) and the obligation, in connection with private placements, to conduct a reasonable investigation of the issue and the recommended securities. (See .) More importantly, as pointed out by FINRA, this investigation cannot rely solely upon the issuer for information but must include an investigation that independently verifies the…
When the contingency offering minimum was lowered from $1 million to the lesser of $900,000 or the price of the asset to be purchased with the offering proceeds, the firm sought and obtained from the investors signed subscription confirmation agreements whereby the investors agreed to the lowered minimum offering amount.
In light of the AWC, it is clear that FINRA did not think this met the terms of , which requires a prompt refund of any consideration paid in the event the original…
The new rule amends NMS ("Minimum Pricing Increment") to establish two minimum pricing increments consisting of (i) a minimum pricing increment of $0.005 for NMS stocks that have a "time weighted average quoted spread" ("TWAQS") during the immediately prior "evaluation period" of $0.015 or less and (ii) $0.01 for all other NMS stocks. The term "time weighted average quoted spread" means the average dollar value difference between the National Best Bid ("NBB") and National…
As stated in the AWC, the investment products at issue, (i.e., syndicate preferred stocks, closed-end funds ("CEFs") and medium-term notes ("MTNs")), are generally purchased for their income features and held long-term.
In this case, FINRA found that the firm was a member of the selling syndicate for each of these products and typically received a selling concession from the issuer of 2 percent for preferred stock, and between 1 percent and 2 percent for CEFs and MTNs. FINRA also…