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Finra launches exam sweep of business development companies

August 5, 2016

 

 


Finra launches exam sweep of business development companies

One area the regulator is focusing on is brokers who have selling agreements with each BDC

Aug 4, 2016 @ 1:46 pm | By Mark Schoeff Jr. | Investment News

Finra has launched an examination sweep of nontraded business development companies, the latest alternative investment product to receive increased scrutiny from the broker-dealer regulator.

In an exam letter posted on its website Thursday, the Financial Industry Regulatory Authority Inc. said it is requesting a list of BDCs offered by Finra members as well as a list of the brokers who have selling agreements with each BDC.

The organization also is seeking a copy of the firms’ due diligence procedures for evaluating the BDC and participating brokers.

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John E. Moriarty, ChFC
December 2015
February 3, 2016

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