News & Analysis as of

Finders Registration Requirement

Royer Cooper Cohen Braunfeld LLC

SEC Proposes Broker-Dealer Exemption for “Finders,” Though Much Remains Uncertain

A recently proposed Securities and Exchange Commission (“SEC”) exemption from broker-dealer registration may make it easier for small and medium-sized businesses to raise capital from accredited investors, but questions...more

JAMS

The SEC’s Proposed Exemptive Order for Finders in Private Placements: An Uncertain Future for Regulatory Certainty - Perspectives...

JAMS on

At age 79, Paul Anka, the crooner and songwriter, is more relevant than ever. In 2020, he appeared on Season 4 of “The Masked Singer,” enjoyed a popular resurgence courtesy of TikTok, reworked his anthem “My Way” for the...more

Foley Hoag LLP - Public Companies & the Law

“Finders” Operating in Massachusetts Should Beware the SEC’s Proposed Relief

• The SEC recently proposed to exempt certain finders from federal requirements to register as a broker - • Massachusetts regulators are opposed to the relief and retain state remedies for unregistered broker activity - ...more

Polsinelli

Revenge of the Rat Pack; SEC Proposes Finders Exemption

Polsinelli on

The U.S. Securities and Exchange Commission (the “SEC”) recently proposed a new, conditional exemption from registration as a broker for individuals who are “finders” that connect accredited investors with issuers looking to...more

Hinshaw & Culbertson LLP

New Proposed SEC Rule Would Allow Finders to Receive Commissions Without Registering as a Broker Dealer

In order to clarify various no action letters and court decisions, the Securities and Exchange Commission (SEC) has proposed an rule that would allow two classes of “finders” to avoid having to register as a broker-dealer or...more

Morgan Lewis

SEC Proposes Exemptive Relief for Finders

Morgan Lewis on

While an SEC proposal to exempt “finders” from broker-dealer registration requirements is promising, potential hazards remain and interpretive questions may persist. ...more

Eversheds Sutherland (US) LLP

SEC proposes exempting certain finders from broker registration

On October 7, 2020, the US Securities and Exchange Commission (SEC) proposed granting exemptive relief from the broker registration requirement in Section 15 of the Securities Exchange Act of 1934, as amended (the Exchange...more

WilmerHale

SEC Proposes Exemptive Relief From Broker Registration for Finders for Small Companies

WilmerHale on

On October 7, 2020, the Securities and Exchange Commission (SEC) proposed to address long-standing questions regarding the applicability of the broker registration requirements to finders for small and emerging businesses....more

Nelson Mullins Riley & Scarborough LLP

SEC Proposes Conditional Broker Registration Exemptions for 'Finders'

Earlier this month, the SEC proposed an order that would exempt “Finders” — individuals who connect private issuers with accredited investors — from federal broker registration requirements, provided that certain conditions...more

Nutter McClennen & Fish LLP

SEC Proposal for Limited Exemption from Broker-Dealer Registration

On October 7, 2020, the Securities and Exchange Commission (the “SEC”) proposed a limited, conditional exemption from the broker registration requirements of Section 15(a) of the Securities Exchange Act of 1934 (the “Exchange...more

Dechert LLP

SEC Proposes Conditional Registration Exemption for Finders

Dechert LLP on

The Securities and Exchange Commission voted 3-2 on October 7, 2020 to publish for comment a proposed conditional exemption (Proposed Exemption), which would allow a natural person to act as a “finder” to connect accredited...more

Mintz - Public Finance Viewpoints

SEC’s Proposed Broker-Dealer Exemption May Apply to “Finders” for Municipal Securities

Today, the SEC published in the Federal Register a proposed notice of an exemptive order (the “Proposal”) that would, subject to limitations and conditions discussed below, exempt certain individuals seeking to find investors...more

Akin Gump Strauss Hauer & Feld LLP

SEC Proposes Exempting Finders, Subject to Compliance Obligations

On October 9, 2020, the Securities and Exchange Commission (SEC) proposed an order that would exempt from registration as broker-dealers certain natural person “finders” who help locate investors in connection with the sale...more

Neal, Gerber & Eisenberg LLP

SEC Proposes Exemption for Certain Finders Assisting with Capital Raising

SEC Chairman Jay Clayton recently noted that: “Many small businesses face difficulties raising the capital they need to grow and thrive . . . [and] finders may play an important role in facilitating capital formation for...more

Pillsbury Winthrop Shaw Pittman LLP

A Limited Exception - California enacts new rules governing exemption for finders in securities transactions

The California Department of Business Oversight has enacted final rules to implement an exemption from broker-dealer registration licensing requirements in California for individuals acting as “finders” in securities...more

Allen Matkins

California Finders Exemption Has Yet To Catch On

Allen Matkins on

Last October, Governor Brown signed AB 667 (Wagner) into law. The bill, which was thefor “finders” product of the efforts of the Corporations Committee of the Business Law Section of the California State Bar, created a...more

Bryan Cave Leighton Paisner

Finders Keepers, Winners Weepers? Startups Using ‘Finders’ to Bring in Investors May Face Penalties

Many startups engage third-party consultants, or “finders”, to make introductions to potential investors. Startup founders generally have a technical background, and may lack meaningful connections in the finance/venture...more

Allen Matkins

Governor Signs Finders Exemption Bill

Allen Matkins on

Yesterday was the last day for Governor Brown to sign or veto bills passed by the Legislature on or before September 11 and in the his possession after that date.  Cal. Const. Art. IV, § 10(b)(1).  On Saturday, he signed into...more

Katten Muchin Rosenman LLP

Corporate and Financial Weekly Digest - Volume X, Issue 37

SEC/CORPORATE - SEC Advisory Committee on Small and Emerging Companies Makes Recommendations - On September 23, the Securities and Exchange Commission Advisory Committee on Small and Emerging Companies (Advisory...more

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