“Finders” and the “Issuer’s Exemption”: The SEC Sheds New Light on an Old Subject

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Recent enforcement actions by the Securities and Exchange Commission (SEC) and a speech by a senior SEC staff member have shed new light on the use of so-called “finders” who seek to assist companies and private fund managers in capital raising activities, as well as the use of the issuer’s exemption by private fund managers. 

On April 5, 2013, David Blass, Chief Counsel of the SEC’s Division of Trading and Markets, addressed the potential application of the broker-dealer registration requirements under Section 15(a) of the Securities Exchange Act of 1934 (Exchange Act) in the context of fund raising activities and other services for private funds.

More articles on Securities Alerts and Issues can be found in our Securities Alerts: SEC & FINRA Section

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“Finders” and the “Issuer’s Exemption”: The SEC Sheds New Light on an Old Subject

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