Noble Capital entered into a settlement with the Financial Industry Regulatory Authority (FINRA) concerning private placements. The July 2025 settlement requires Noble to pay a fine and agree to a censure.
Private placements are complicated investments that should not be sold to most investors. Brokers can only sell most private placements to investors who have a high-risk tolerance and who also qualify as accredited investors. Regulators often have concern over the sale of such investments. This is because such investments are hard for most investors to evaluate. Also, private placements often pay high commissions.
Securities laws and regulations limit to who and how all securities can be solicited. These limitations extend to how and who a broker can sell such investments by cold call or general solicitation.
Between September 2019 and January 2020, Noble failed to have a supervisory system designed to be in line with securities laws related to the general solicitation of private placement offerings per regulator allegations.
Additionally, Noble failed to reasonably supervise a broker / financial advisor who, in connection with two private offerings, cold-called more than 40 prospective investors who did not have an established relationships with Noble prior to its participation in the security offerings.
Investors should invest with care when offered a private placement. This post is meant as commentary as to a recent event. For questions about this post, please contact the Law Offices of Jeffrey Pederson.
Recent Comments