16 Sep 2025
💼FINRA Proposes Amendments to Capital Acquisition Broker Rules
Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Amend the FINRA Capital Acquisition Broker (“CAB”) Rules
Summary
The SEC is reviewing proposed amendments to the FINRA Capital Acquisition Broker Rules, which aim to broaden CAB activities in selling unregistered securities and enhance participation in secondary transactions. The changes could have significant implications on compliance and operational practices for CABs and associated investment firms.
Agencies
- Securities and Exchange Commission
Business Impact
$$ - Med
The proposed changes to the FINRA Capital Acquisition Broker Rules expand business opportunities for CABs by allowing them broader activities in soliciting unregistered securities. This could enhance fundraising capabilities for companies, impacting compliance obligations, access to capital, and competitive landscape among brokers.