MFA Blog

MFA Submits Comments to SEC on Amendments to FINRA Rule 5123

Posted on July 22, 2013

On July 22, MFA submitted comments to the SEC in response to its notice of the Financial Industry Regulatory Authority’s (“FINRA”) amendments to Rule 5123. In the letter, MFA explains that the requirement to file a PPM or other disclosure document with FINRA in connection with certain private placements conflicts with the statutory scheme for the regulation of offerings by private funds under the federal securities laws, and imposes an unnecessary burden on issuers. An expansion of the Rule to require a FINRA member to provide FINRA with additional information about the issuer and the offering would further conflict with the long-standing regulatory framework for private fund offerings.