📈FINRA Proposes Rule Change for Non-Traded BDCs and IPO Access
Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of 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 published a notice regarding FINRA's proposed rule change to exempt certain business development companies (BDCs) from compliance with specific rules related to the purchase and sale of new issues. This change aims to enhance non-traded BDCs' ability to invest in initial public offerings, thereby increasing capital access for these entities and their investors while promoting market integrity.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed rule change facilitates non-traded business development companies (BDCs) to invest more easily in initial public offerings (IPOs) by exempting them from certain restrictions. This change will likely increase access to capital for BDCs and enhance investment opportunities for their investors, impacting financial operations and strategies of relevant business entities.