Closing an Underwriting Syndicate
The date on which all securities are delivered to the underwriter is called the syndicate settlement date. The syndicate members then fill their orders, receive payment from the purchasers, and deliver their receipts to the lead underwriter. Syndicate accounts must be closed within 90 days after the syndicate settlement date. This closing date is called the final settlement date. No later than the final settlement date, each member of the selling syndicate must receive an itemized statement of syndicate expenses. The expenses are divided among the members on a pro rata basis. For debt offerings, there is an additional requirement that syndicate members receive 70% of what they are due within 30 days after the syndicate settlement
