SIE practice questionhardRegulation D - Solicitation Practices
A broker solicits non-accredited investors for a Regulation D offering after exceeding the permitted number allowed. This is:
- APermitted by FINRA for all offerings
- BEncouraged for capital raising
- CA prohibited violation of Reg D rules✓ Correct answer
- DRequired for blue sky compliance
Explanation
Why C — A prohibited violation of Reg D rules
Reg D limits the number of non-accredited investors in certain offerings. Exceeding this violates SEC rules. No amount of capital raising or state compliance excuses this violation.
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