Series 79: Participation If A Conflict Exists

Participation if a Conflict Exists

Despite the existence of a conflict of interest, a member may participate in a public offering under either of two circumstances:

• • The conflict of interest is prominently disclosed in the prospectus or offering document and one of the following conditions is met:
• » The managing underwriter or other member responsible for managing the offering has no conflict of interest, is not an affiliate of a member with a conflict of interest, and has not been convicted, suspended, or enjoined under any anti-fraud provision of securities laws or SRO regulations

or

• » The securities offered have a bona fide public mark