New Hampshire’s Crackdown on Private Placements: Why Broker-Dealers Need GiGCXOs’ PrivatePlacementAudit360™
In December 2024 securities regulators in New Hampshire proposed a $480,000 penalty against Herbert J. Sims & Co. Inc., a Fairfield Connecticut firm known for underwriting tax free bonds. Regulators allege the firm failed in due diligence, record keeping, and compliance obligations related to the sale of high risk Regulation D private placements to residents of the state. The proposed order also seeks to bar the firm from further securities sales in New Hampshire. Herbert J. Sims & Co. has requested a hearing to contest the allegations.
The case highlights the continuing scrutiny on private placement offerings and the expectation that firms undertake rigorous due diligence before presenting investments to clients. Regulators have emphasized that firms must not only evaluate risks carefully but also maintain accurate records and transparent communication with both investors and oversight authorities.
GiGCXOs is promoting its PrivatePlacementAudit360 service as a way for firms to avoid the pitfalls that have led to regulatory action. The program provides in depth assessments of private placement offerings to uncover risks and ensure alignment with securities laws, regular compliance reviews to verify adherence to state and federal rules, and improved record keeping systems that make documentation accurate and accessible during audits or examinations. Training and education programs are also included to help teams stay current on evolving regulations and industry best practices.
With enforcement actions mounting against firms that mismanage private placements, adopting stronger oversight mechanisms has become essential. GiGCXOs argues that PrivatePlacementAudit360 gives firms the tools to navigate the complexities of private offerings, protect investors, and reduce the risk of costly penalties like those now facing Herbert J. Sims & Co.
For more information on how PrivatePlacementAudit360™ can support your firm's compliance needs, visit GiGCXOs.
