Series 22: 6.1.4.1. Customer Account Statements

6.1.4.1. Customer Account Statements

FINRA requires member firms whose customers hold publicly offered DPPs to disclose a per share estimated value of the DPP on customers’ account statements. This valuation provides important transparency. The value must be developed in a manner reasonably designed to ensure that the per share estimated value is reliable. FINRA lists two possible methodologies which would accomplish this requirement. The broker-dealer may use either method provided it is stated in the issuer’s annual Issuer Report.  The methods are as follows:

• Net Investment - this valuation is based on the “Amount Available for Investment” percentage from the “Estimated Use of Proceeds” section of the offering prospectus. If the issuer provided a range of percentages, the member can use the maximum perc