SEC Approves New FINRA Rule 5123: Private Placement of Securities

June 27, 2012
The U.S. SEC recently approved new FINRA Rule 5123, subject to a brief comment period ending July 5, 2012. The rule, as approved, eliminates several controversial provisions included in earlier proposals, but imposes a new notice filing requirement on FINRA members participating in non-exempt private placements. This update examines the new rule and discusses the ways in which earlier proposals were amended to address industry concerns.