Which statement is NOT TRUE regarding private securities transactions executed by an associated person of a member firm?

Private securities transactions executed by an associated person of a member firm are subject to specific regulatory guidelines to ensure that the member firm is aware of and can manage any potential conflicts of interest. One of the key points is that these transactions do not necessarily prohibit private placements. They may indeed involve private placements as long as the associated person follows the proper procedures and obtains the necessary approvals.

The requirement for prior approval from the firm ensures that the firm can monitor the activities of its associated persons and protect itself from liability and risks associated with unsupervised transactions. Additionally, reporting all transactions to the firm creates transparency and accountability, which are vital in maintaining compliance with regulations and protecting investors.

Regulation D governs private placements, providing a framework under which these types of securities can be sold without the requirement of full registration with the SEC. Therefore, private sales must adhere to these regulations, but this does not conflict with the ability of an associated person to engage in these transactions as long as they meet the oversight requirements set forth by their member firm.