This question is for the SERIES 24: The IPO of ABC Technologies is scheduled to price next week. May an allocation be made to the spouse of an employee of one of the underwriters?

Answer 1

IPOs may not be sold to restricted persons, which include broker-dealers and persons associated with these firms. Additionally, persons who receive material support from an employee of a broker-dealer is also considered a restricted person within the FINRA New Issue rule. Material support is deemed to exist when members of the immediate family are living in the same household.