The SEC Advisory Committee on Small and Emerging Companies (ACSEC) discussed the regulation of “Finders” at their most recent meeting in Washington, DC. Finders can act as a vital catalyst in matching investors to smaller companies yet there is “significant uncertainty” in the regulation of these Finders that are not a broker dealer. This ambiguity may seem a trite task to address and ACSEC is “disappointed the Commission has not taken actions to help to address these concerns despite repeated and longstanding requests.”
In brief, the Committee requests the Commission take the following action:
The Commission adopt rules in the near future to provide regulatory certainty for finders, private placement brokers, and platforms not registered as broker-dealers involved in primary and secondary transactions of unregistered securities. Pending adoption of any new rules, staff in the Division of Trading and Markets should with all deliberate speed bring clarity and certainty in this area by promulgating appropriate guidance.
The ACSEC Recommendation Letter to SEC Commissioner is embedded below.
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