01 Dec 2012
Banged Up Abroad
The rules in the US prohibit firms from selling securities to investors without being registered broker-dealers; but most firms tend to believe that the rule applies to retail investors, not institutional ones — the so-called qualified institutional buyers.
The firms paid up the $1.8 million fine without a murmur — taking on the SEC is hard to do when the letter of the law has been violated. What worries some other firms is whether regulators in other countries will take a similar line. That makes securities firms feel very insecure.
(This story was published in Businessworld Issue Dated 10-12-2012)