The Securities and Exchange Commission (SEC) is reviewing a rule change proposed by the Financial Industry Regulatory Authority (FINRA). This amendment requires FINRA members to file communications about private placement offerings that are shared with retail investors, not just the private placement memorandums or offering documents initially required. The SEC is inviting public comments to help decide whether this rule change should be approved or rejected, focusing on whether it will improve oversight of broker-dealer communications with the public. Interested individuals can submit their thoughts through specified online and paper methods by February 24, 2021.
Simple Explanation
The SEC is looking at a new rule from FINRA asking people who sell special kinds of investments to tell them about any messages they send to regular folks. They want to make sure everyone gets the right information and are asking people to say what they think about this idea by a certain date.