The Financial Industry Regulatory Authority, Inc. (“FINRA”) recently released Regulatory Notice 20-10, which discusses the recent changes to Rule 5110 (Corporate Financing Rule – Underwriting Terms and Arrangements) (the “Rule”), the main FINRA rule regarding compensation in securities offerings.
Read our Legal Update here.
FINRA released Regulatory Notice 20-10, which discusses the changes to modernize the Corporate Financing Rule. The implementation date is bifurcated with implementation for Rule 5110(a)(3)(A), (a)(4)(A)(ii) and (a)(4)(A)(iii) effective as of March 20, 2020 and implementation of the rest of the rule on September 16, 2020.
See the Regulatory Notice here.
The new rule…
On March 9, 2020, the Financial Industry Regulatory Authority (FINRA) published Regulatory Notice 20-08 (Notice) with respect to business continuity planning in connection with the recent coronavirus (COVID-19) outbreak. The Notice offers guidance on preparing for potential pandemic-related risks and provides regulatory relief from certain requirements in light of COVID-19.
Read our full Legal Update
FINRA’s 2020 Risk Monitoring and Examination Priorities Letter identifies a number of areas of focus for the examination program in the coming year. Here we highlight particular areas of focus for capital markets practitioners:
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This article discusses recent amendments to Financial Industry Regulatory Authority (FINRA) Rule 5130 (Restrictions on the Purchase and Sale of Initial Equity Public Offerings) and Rule 5131 (New Issue Allocations and Distributions), which were originally published for comment in the Federal Register on August 8, 2019 and approved by the Securities and Exchange Commission (the…
Yesterday, the Securities and Exchange Commission approved FINRA’s proposed amendments to its Corporate Financing Rule, which are intended to modernize, simplify, and streamline the rule. FINRA’s amendments address, among other things, (1) filing requirements; (2) filing requirements for shelf offerings; (3) exemptions from filing and substantive requirements; (4) underwriting compensation; (5) venture capital exceptions; (6)…
FINRA’s rules relating to equity IPOs, on spinning and withholding and IPO allocations, which came into effect following the dot-com bust, were recently amended. The amendments to Rule 5130, relating to restrictions on the purchase and sale of initial equity public offerings, and Rule 5131, relating to IPO allocations and distributions, will become effective on…
FINRA proposes to amend Rule 5130 (Restrictions on the Purchase and Sale of Initial Equity Public Offerings) and Rule 5131 (New Issue Allocations and Distributions), which are known as the spinning and withholding rules and which were adopted after the dotcom bust.
The proposed rule change would exempt additional categories of persons from the restrictions…
Earlier this month, FINRA responded to comments submitted regarding proposed amendments to Rule 5110 (see: https://bit.ly/2MlXCU4) and filed an amended proposal with the Securities and Exchange Commission (see: https://bit.ly/31bECMr). Exhibit 4 shows the changes proposed in this Partial Amendment No. 1 in a blacklined version.
In Partial Amendment No. 1 FINRA is, among…
FINRA has released guidance, in question-and-answer format, with respect to FINRA member firm requirements to make filings under FINRA Rule 5122 and Rule 5123. The Q&A addresses a number of frequently asked questions, including whether a placement agent may file on its behalf and on behalf of other placement agents, the types of materials that…
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