FINRA Releases Updated Guidance for Members Conducting Private Placements

On May 9, 2023, the Financial Industry Regulatory Authority, Inc. (“FINRA”) issued Regulatory Notice 23-08 (the “Notice”), which provides supplemental and updated guidance for members conducting private placements pursuant to the Regulation D safe harbors under Sections 3 or 4 of the Securities Act of 1933, as amended. 

The Notice does not change any existing laws, regulations or interpretations of existing regulatory requirements. Rather, the Notice was provided as a reminder of members’ obligations in light of the changes in the legal and regulatory framework since FINRA published Regulatory Notice 10-22 in 2010.