A Dealer Member is planning a distribution as a private placement and therefore believes premarketing restrictions do not apply. If the firm later decides to proceed via a public prospectus, when do the restrictions under IDPC Rule 3509 officially begin to apply?

Question

Accepted Answer

Correct. Under Rule 3509(5), if a firm switches from a private placement to a prospectus offering, the premarketing restrictions apply from the time the decision to change was reasonably expected.

A Dealer Member is planning a distribution as a private placement and therefore believes premarketing restrictions do not apply. If the firm later decides to proceed via a public prospectus, when do the restrictions under IDPC Rule 3509 officially begin to apply?

Discussion