Earlier this month, the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) each published their 2016 exam priorities letters. Each agency publishes an exam priority letter annually in which they identify topics of examination focus for the coming year, recurring challenges faced by firms, and perceived areas of heightened risk to investors and/or the integrity of the U.S. capital markets.
This year, for the first time, the SEC letter specifically mentions EB-5 as an exam priority. The SEC indicated that it will review offerings involving the EB-5 program to evaluate whether legal requirements are being met in the areas of due diligence, disclosure, and suitability.
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