On December 3, 2012 the SEC Approved New FINRA Rule 5123 Regarding Private Placements. FINRA Rule 5123 requires each FINRA member that sells an issuer’s securities in a private placement, subject to certain exemptions, to file with FINRA a copy of any private placement memorandum, term sheet or other offering document the firm used, within 15 calendar days of the date of the sale, or indicate that it did not use any such offering documents.
Firms must file the required offering documents electronically through FINRA’s new private offering filing system through the FINRA Firm Gateway.
In addition, firms must submit filings regarding member firm private offerings (MPOs), as required by FINRA Rule 5122 (Private Placements of Securities Issued By Members), through the same FINRA Gateway system.
Click here for the full regulatory notice 12-40.
About Red Oak Compliance Solutions
Red Oak Compliance Solutions is a leading provider of intelligent compliance software, offering a range of AI-powered solutions designed to help firms of all sizes successfully navigate the increasingly complex regulatory landscape. Our suite of 17(a)-4/WORM compliant features offer risk minimization, cost reduction, and process optimization capabilities with features that are designed to evolve with our client’s needs. Our flagship advertising review software enables firms to deliver compliant content to the market with confidence, faster. Our Disclosure Management and Intelligence solution simplifies the management of disclosures, while our Registration Management solution automates and streamlines the licensing and registration process, further enhancing your internal processes.