Exam Alert: FINRA changes research analyst rules for offerings of emerging growth companies

FINRA has changed its rules to reflect the loosened standards for research analyst activities in connection with offerings of emerging growth companies (EGCs). These new standards are a result of the JOBS Act. Continue reading

FINRA has changed its rules to reflect the loosened standards for research analyst activities in connection with offerings of emerging growth companies (EGCs). These new standards are a result of the JOBS Act. The changes include:

-Research analysts may now attend meetings with issuer management that are also attended by investment banking personnel, in connection with an IPO of an EGC.

-FINRA has eliminated all quiet periods in connection with IPOs, secondary offerings, and lock-up agreements in relation to EGCs.

FINRA announced the changes on November 1, 2012, but they are effective retroactively to either April 5, 2012 or October 11, 2012, depending on the specific change.

Source: FINRA Regulatory Notice 12-49: SEC Approves Amendments to NASD Rule 2711 and Incorporated NYSE Rule 472 to Conform to JOBS Act Requirements

This alert applies to the Series 79, Series 62, Series 24, Series 7, and Series 82.

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