Regulatory Alerts2026-02-23 | Regulatory Notice 26-04Added · Updated
FINRA Adopts Amendments to the Capital Acquisition Broker Rules
FINRA has adopted amendments to the Capital Acquisition Broker (CAB) rules, effective March 25, 2026, to expand permissible activities for CABs. The changes update the definition of "institutional investor" to include eligible employees, permit CABs to represent buyers in sales of newly issued unregistered securities, and allow joint representation in change of control transactions with written consent. Additionally, the amendments authorize secondary transactions of unregistered securities between institutional investors, permit associated persons to participate in private securities transactions under FINRA Rule 3280, allow compensation in the form of securities, and align M&A broker activities with Exchange Act Section 15(b)(13).