Finra has launched an examination sweep probing brokerages’ activity involving SPACs, Investment News reports.
The Financial Industry Regulatory Authority is delving into how firms offer and provide services to SPACs, according to an examination letter posted on the regulator’s website.
Finra is asking targeted firms to detail their SPAC activities from July 1, 2018 through Sept. 30 of this year. The broker-dealer self-regulator will review the firm’s policies and procedures related to public offerings, due diligence, suitability and communications with customers, among other areas. It also will assess how firms choose customers for SPAC recommendations. Read more.
