RJ and Makay

Broker-dealers involved in Regulation D private placements and other opaque or illiquid investments beware. The Financial Industry Regulatory Authority (FINRA) has its eye on you, reports Bruce Kelly of Investment News.

Monitoring these types of investments is a top priority of FINRA's enforcement department, warns James Shorris, FINRA's executive vice president and executive director of enforcement. That's because some firms have failed to perform the appropriate due diligence on these sorts of offerings, Shorris explains.