MFA Submits Comments to SEC on FINRA Rule 5131

MFA submitted a letter to the Securities and Exchange Commission in response to FINRA’s proposed change to its amendments to Rule 5131 (New Issue Allocations and Distributions). The proposed change would provide that a member may rely upon a written representation from a person authorized to represent an account that does not look through to the indirect beneficial owners of a fund invested in the account, other than a beneficial owner that is a control person of the investment adviser to such private fund, and meets the other proposed conditions. In the letter, MFA explains that, due to their structure, diversified range of investors, and investment activity of allocating capital across a broad portfolio of assets, there is a reduced risk of spinning through an investment in a hedge fund. Accordingly, the letter supports the proposed change to the amendments.

Downloads