Red Flags: The Duty to Look Further

What this video covers

• What triggers the duty to look further: any information, public or discovered during investigation, that would alert a prudent person to dig deeper
• Why an audited, certified financial statement does not override red flags, and the Securities and Exchange Commission (SEC) enforcement precedent that proves it
• How reliance on management representations, offering documents, or even due-diligence reports from the issuer's own counsel falls short when red flags are present
• When an issuer's refusal to provide information, or交付 of non-responsive or outdated data, becomes its own red flag requiring further steps
• Why a missing Private Placement Memorandum (PPM) is a fact-specific red flag to weigh, never an automatic disqualification or automatic green light
• How exam questions bury double violations: a financial-statement red flag plus an undisclosed conflict of interest in the same fact pattern
• The four-point exam-day checklist for treating "audited" and "certified" as continuing duties, scanning for hidden conflicts, and weighing missing documents