Clifford Chance

FINRA Proposes Amendments to its "New Issue" Rules With Key Implications for Foreign Fund Managers and Investors

October 16, 2019

In July of this year, the United States Financial Industry Regulatory Authority issued proposed amendments (the "Proposed Amendments") to FINRA Rules 5130 and 5131 (the "New Issue Rules") that, if adopted, would provide much needed clarity for certain fund managers and investors that participate in initial public offerings of equity securities ("New Issues"). The Proposed Amendments seek to promote capital formation by, among other things, making it easier for certain investors to participate in New Issues, and reducing the regulatory burdens associated with compliance with the New Issue Rules. While the Proposed Amendments would benefit fund managers and investors generally, they contain provisions of particular importance to non-US fund managers and investors.

Download PDF