The SEC Remains in Search of and Is Looking for Finders -

Much has been written on the topic of finders and arrangers of securities transactions, including when a person or entity acting as a finder (i.e., someone who merely makes an introduction) has crossed the line and engaged in activities or conduct that requires registration as a brokerdealer. Shortly before the end of Jay Clayton’s term as Chairman of the Securities and Exchange Commission (SEC), he issued a proposed order providing an exemption from broker-dealer registration requirements for certain “finders” who limit their activities in accordance with the conditions set forth in the proposed order. Ultimately, the proposal was not adopted. Today, finders and unregistered securities transaction activity continue to be on the SEC’s radar, with several actions filed in the federal courts against unregistered finders, confirming that the activity of unregistered persons and entities participating in capital raising remains squarely on the SEC agenda.