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The lawyers for both the issuer and exempt market dealer (EMD) meet to close a financial transaction for an offering of securities. Which of the following is a role of the legal counsel for the EMD only?

User Mkedobbs
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Final answer:

Legal counsel for an Exempt Market Dealer (EMD) focuses on ensuring compliance with securities laws, performing due diligence, and confirming regulatory requirements specific to the EMD during a financial transaction of security offerings.

Step-by-step explanation:

The role of the legal counsel for an Exempt Market Dealer (EMD) during the closing of a financial transaction for an offering of securities is distinct from that of the issuer's lawyers. The EMD's lawyers are primarily responsible for ensuring that the EMD complies with securities laws and regulations relating to the sale and distribution of securities. They might also review and negotiate the terms of the offering document or subscription agreement, perform due diligence to confirm the EMD's right to sell the securities, and ensure that the EMD has met all necessary regulatory requirements, such as KYC (Know Your Client), AML (Anti-Money Laundering), and suitability obligations specific to their clientele.

User Vidya Marin
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