SEC Approves FINRA Rules Addressing Conflicts of Interest in Fairness Opinions

more+
less-

The SEC has approved Rule 2290, proposed by the Financial Industry Regulatory Authority (“FINRA”) for its member firms in connection with the issuance of fairness opinions.[1] FINRA (formerly known as the National Association of Securities Dealers) originally proposed the Rule in

2005, to address concerns that disclosures in fairness opinions might not inform shareholders sufficiently about potential conflicts of interest between the issuer of a fairness opinion and the parties to the transaction.

While many investment banks already have disclosure and procedural practices that conform to many of the Rule’s requirements, upon effectiveness of the Rule most FINRA member firms will need to make some changes to their fairness opinion practices, although not as substantial as the changes that would have been required by FINRA’s original proposal.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

more+
less-

Morrison & Foerster LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×