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FINRA EMERGING REGULATORY ISSUES

June 26, 2013 @ 3:48 pm
Posted by Exclusive Visas

New York Compliance Meeting

June 26, 2013

On Wednesday, June 26, 2013, the FINRA District 10 Quarterly Meeting in New York City; the topic was “Emerging Regulatory Issues”, presented by Sarah Grohl, Director of Emerging Regulatory Issues.  This is the first FINRA meeting that had EB-5 on its agenda.  Of the 2 hour meeting, only 10 minutes were dedicated to the EB-5 program.  The discussion was very general, however Ms. Grohl indicated that FINRA has been consulting with USCIS and the SEC to discuss EB-5 policy implementation.  She indicated that FINRA is concerned about the fraud case in Chicago, as well as the issue with unregistered broker dealers. FINRA is especially concerned with conflicts of interest in EB-5 Projects, especially when the General Partner is also a closely related party of the Project or Borrower, and whether the disclosures identifying same are sufficient.  FINRA is looking into the following issues as they apply to EB-5:

1.     Disclosures, Suitability, and issuer due diligence;

2.     Outside Business Activities and Private Securities Transaction;

3.     Registration and Licensing;

4.     Controls over Foreign Business Activity;

5.     Payment of Foreign Finder’s Fees;

Fred Burgess, President of Exclusive Visas, who attended the meeting, expressed to FINRA the concern that current FINRA suitability standards do not address the goals of the EB-5 investor, and current “Know Your Client” standards need to be rewritten in light of the EB-5 program.

Fred Burgess, Esquire, is a member of IIUSA and a Registered Representative of Trustmont Financial Group, a FINRA registered Broker Dealer.


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EB-5 Investor Visas - Permanent U.S. Residency with the EB-5 Program

EB-5 consultants from Exclusive Visas assist foreign investors looking for EB-5 visa options to obtain U.S. residency. Each EB-5 consultant is experienced in EB-5 investor visa procedures.

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