Regulatory Alerts2002-05-31
Acquisition of Securities of Public Companies by Licensed Dealing Members, Broker-Dealers and Investment Advisers
The Securities & Exchange Commission directs licensed dealing members, broker-dealers, and investment advisers to limit aggregate acquisitions of public company securities so they do not trigger a mandatory takeover offer. These licensed operators must disclose initial acquisitions of five percent or more, as well as subsequent acquisitions or disposals of two percent or more, to the Commission before the next trading session. The Commission will impose sanctions for violations of these acquisition limits and disclosure timelines, with the directives taking effect on June 1, 2002.
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