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The Securities and Exchange Commission will hold a roundtable discussion on October 26, 2020 that will focus on Regulation Best Interest and Form CRS.  The roundtable will discuss initial observations regarding implementation.  The published agenda, which is available here, includes various members of the SEC and FINRA staffs.  Interpretative questions may be submitted in…

In statements made at SIFMA’s Virtual Compliance and Legal Forum, FINRA Chief Executive Officer, Robert Cook, indicated that FINRA may be reconsidering aspects of its cycle examinations in light of the challenges presented by the COVID-19 pandemic. FINRA conducts between 1,500 and 2,000 risk-based cycle examinations annually to assess identified risks and controls and determine…

In a law journal note titled “The Seller’s Curse and the Underwriter’s Pricing Pivot:  A Behavioral Theory of IPO Pricing,” author Patrick Corrigan considers various theories advanced to explain IPO underpricing.  Given that so many venture and private equity investors are finding alternatives to the traditional IPO model, whether through direct listings or…

The Securities and Exchange Commission announced that it will hold a roundtable on October 26, 2020 during which the SEC staff and the FINRA staff will discuss their initial observations on Regulation Best Interest and Form CRS implementation.  The roundtable will include representatives from the SEC’s Office of Compliance Inspections and Examinations, Division of Trading…

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:

  • Private placement retail communications and online distribution platforms:  FINRA will review how member firms use social media and other platforms in

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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…