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finance committee

It is a FINRA (Financial Industry Regulatory Authority) advisory committee that gives feedback on rule proposals and comprises of representatives from member firms.

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As the name suggests here in this article the topic for discussion is finance committee.

What is a Corporate Financing Committee

It is a FINRA (Financial Industry Regulatory Authority) advisory committee that gives feedback on rule proposals and comprises of representatives from member firms. This committee has a job to advise the FINRA on both regulatory and public policy issues that arise from the capital-raising activities of member firms, including their investment banking services.

These services include:

  • Underwriting terms and arrangements in public offerings,
  • Private placements,
  • Distribution of securities of other member firms and Affiliates
  • And A variety of other activities.

Breaking Down Corporate Financing Committee

It also advises FINRA on a variety of offerings, like:

  • Corporate equities,
  • Debt,
  • Real estate investment trusts (REITs),
  • Closed-end investment companies, and
  • Direct participation programs (DPP).

It may also look for pro’s and con’s, concerning a variety of issues that arise from the research activities of FINRA member firms.

Corporate Financing Committee: FINRA Oversight

It is one of the 15 FINRA advisory committees that consider the rule proposals and provide feedback on them, alongside examining them and considering regulatory initiatives and various industry issues. As per FINRA, more than 160 members from inside the industry and 35 from outside the industry serve on these committees. These advisory committees have meetings that range from two in minimum and maximum five times every year, either in-person or via teleconferencing.

Corporate Financing Committee vs. Corporate Financing Department

FINRA’s Corporate Financing Committee, that provides advice, is sometimes confused with FINRA’s Corporate Financing Department, that helps FINRA-regulated firms comply with FINRA rules and federal securities laws by reviewing documents that are related to capital-raising activities and arrangements. Such efforts are done in order to protect the investors and issuers by regulating:

  • Underwriting terms and arrangements,
  • Alongside conflicts of interest

When underwriters have an affiliation with an issuer or when they are the recipients of large portions of the proceeds in a securities offering.

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