FINRA Rule 5123 (\u201cRule 5123\u201d or the \u201cRule\u201d) becomes effective on December 3, 2012 and will apply prospectively to private placements that begin selling efforts on or after this date. Rule 5123 requires a member firm of the Financial Industry Regulatory Authority (\u201cFINRA\u201d) selling an issuer\u2019s securities in a private placement to file with FINRA a copy of any private placement memorandum, term sheet or other offering document, including any materially amended versions thereof, used by the firm. Under the Rule, the FINRA member firm must file the disclosure documents within 15 calendar days of the date of the first sale or indicate that it did not use any such offering documents<\/span>.<\/p>\n The required offering documents must be filed electronically with FINRA through the FINRA Firm Gateway (the \u201cFirm Gateway System\u201d). All broker-dealers have authorized users to this system. FINRA has indicated that it will afford confidential treatment (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" FINRA Rule 5123 (\u201cRule 5123\u201d or the \u201cRule\u201d) becomes effective on December 3, 2012 and will apply prospectively to private placements that begin selling efforts on or after this date. Rule 5123 requires a member firm of the Financial Industry…<\/span><\/p>\n