Key Takeaways
- Anti-fraud rules (Rule 10b-5) prohibit material misrepresentation; violations carry civil and criminal penalties.
- State blue sky notice filings are required within 15-30 days of the first sale to each state's resident.
- Sponsors owe fiduciary duties of loyalty, care, and good faith to investors.
- Best practices: separate bank accounts per syndication, full conflict disclosure, and documented decision-making.
This track contains subscriber-only lessons
Explore free tracks in this area of study, or subscribe for full access.
Browse available tracks"Capital Raise Execution: Reporting, Distributions & Compliance" is a Pro track
Upgrade to access all lessons in this track and the entire curriculum.
Test Your Knowledge
1.What is the anti-fraud provision most relevant to syndication sponsors?
2.What fiduciary duty does a general partner owe to limited partners?
3.What triggers anti-fraud liability for a syndication sponsor?