New Hampshire’s Crackdown on Private Placements: Why Broker-Dealers Need GiGCXOs’ PrivatePlacementAudit360™
In December 2024, New Hampshire securities regulators proposed a $480,000 penalty against Herbert J. Sims & Co. Inc., a Fairfield, Connecticut-based firm specializing in tax-free bond underwriting. The allegations include failures in due diligence, record-keeping, and compliance related to the sale of high-risk Regulation D private placements to state residents. The proposed order also seeks to bar the firm from further securities sales in New Hampshire. Herbert J. Sims & Co. has requested a hearing to address these allegations.
This case underscores the critical importance of rigorous due diligence and compliance in private placement offerings. Firms must ensure comprehensive evaluation of investment opportunities and maintain transparent communication with regulators and investors.
To assist firms in navigating these complexities, GiGCXOs offers PrivatePlacementAudit360™, a comprehensive solution designed to enhance compliance and due diligence processes. Key features include:
In-Depth Due Diligence Assessments: Thorough evaluation of private placement offerings to identify potential risks and ensure alignment with regulatory standards.
Regulatory Compliance Reviews: Regular audits to verify adherence to state and federal securities laws, minimizing the risk of enforcement actions.
Enhanced Record-Keeping Systems: Implementation of robust documentation practices to maintain accurate and accessible records of all transactions and communications.
Training and Education Programs: Ongoing support to keep your team informed about the latest regulatory developments and best practices in private placements.
By integrating PrivatePlacementAudit360™ into your operations, your firm can proactively address compliance challenges, foster investor trust, and mitigate the risk of costly penalties.
For more information on how PrivatePlacementAudit360™ can support your firm's compliance needs, visit GiGCXOs.
