SEC and FINRA: Regulators seem at odds over private placements

SEC Chairman Mary Schapiro told the House Committee on Oversight and Government Reform that her staff is considering…

SEC Chairman Mary Schapiro told the House Committee on Oversight and Government Reform that her staff is considering whether the SEC should revisit the ban on public marketing of private placements as part of an overall review of the securities. So-called Regulation D offerings are exempt from SEC registration and are required to disclose far less information than that supplied by companies registering for an initial public offering. She said companies seeking access to capital shouldn’t be “overburdened by unnecessary or superfluous regulations.” For full story, see: https://www.investmentnews.com/article/20110515/REG/305159973 target=”_blank”>SEC eyes opening up private placements. At the same time, Finra wants broker-dealers that sell risky Regulation D private placements to engage in a more vigorous due diligence process, according to its chairman Richard Ketchum. Broker-dealers should have an active role in the scrutiny of a Reg D offering, he said last month. For full story see: Finra’s Ketchum: B-Ds must ‘push and pull’ for Reg D details