FINRA Rule 8210 mandates that businesses and registered and related people disclose records, documents, and testimony to the regulator in the course of an inquiry. Because FINRA is a self-regulatory organization (SRO), it does not have the authority to issue subpoenas or compel disclosure.

As a result, it has established regulations that its member businesses and associated persons commit to following. The SEC examines and approves these rules. FINRA's principal method for gathering…

Every business requires financial resources. Because a commercial bank may not be able to provide all of a company's finance, there are alternatives. Companies can use private placement programs to generate funds. This way of collecting private capital allows businesses to access the funding they want without having to go through the SEC's registration procedure, which can be time-consuming and costly.

Even while firms receiving funds from private investors are excluded from the…