Series 79 practice questioneasyDue Diligence Defense
Who is primarily responsible for demonstrating a due diligence defense in a registered public offering?
- AThe issuer’s legal counsel
- BThe underwriter✓ Correct answer
- CThe SEC
- DThe company’s shareholders
Explanation
Why B — The underwriter
Underwriters must show they performed reasonable investigation for a due diligence defense. Issuer counsel and the SEC are not responsible for this burden.
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