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Private Placements of Securities Effective Date

Monday, January 7, 2013

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 the global advertising review software of choice in the financial services industry. It is a comprehensive suite of SEC 17A-4 compliant features that are 100% books and records compliant and provides clients with 35% faster approvals and 70% fewer touches or better. We also offer Smart Review(SM), which solves for the storage and maintenance of disclosures, helping firms reduce risk, decrease review times, and increase the speed of distribution of marketing materials. Smart Registration(SM) automates the licensing and registration management process to help reduce regulatory risk and time spent on manual processes. Overall, Red Oak allows firms to minimize risk, reduce costs, and increase compliance review process effectiveness and efficiencies.