19 May 2025
📈FINRA Proposes Exemption for Business Development Companies
Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Exempt Certain Business Development Companies From FINRA Rules 5130 (Restrictions on the Purchase and Sale of Initial Equity Public Offerings) and 5131 (New Issue Allocations and Distributions)
Summary
The SEC is reviewing a FINRA proposal to exempt certain business development companies from specific restrictions regarding public offerings and allocations. This notice extends the period for consideration of the proposal, allowing for further evaluation of feedback received during the comment period. The outcome could impact regulatory compliance for affected entities.
Agencies
- Securities and Exchange Commission
Business Impact
$$ - Med
The proposed rule change suggests an exemption for certain business development companies from specific FINRA rules, potentially easing regulatory burdens and enhancing investment opportunities, which is important for business owners and executives in that sector.