Series 24: SEC Rule 15c2-11

SEC Rule 15c2-11

According to SEC Rule 15c2-11, market makers that quote securities on the OTCBB or the Pink Sheets must conduct due diligence on the companies that issue the securities and on the securities themselves. This due-diligence process includes obtaining and reviewing copies of the security’s prospectus or offering circular and the issuer’s financial documents. The relevant information must be obtained and reviewed by the market maker three days before submitting a quote in the security.

The SEC also requires market makers to attest to their compliance with the requirements of Rule 15c2-11 on Form 211. Form 211 must include copies of the issuer information and be signed by a principal. Records of the due-diligence process must be kept for three