FINRA to get tough on Reg D Offerings

Finra expects to bring cases against brokerage firms involved in selling private-placement offerings next year. Reg D refers to the securities regulations that govern the sale of private-placement investments, which are generally exempt from having to be registered with regulators. The self-regulatory organization has been receiving an increasing number of complaints from investors in recent months concerning sales of private placements. Finra is looking at misrepresentations made by brokers in connection with the sale of the products, as well as whether sales made to customers were suitable.