SEC "Finders" - Registration Exemption Proposal (11/9/20)
SEC Proposed Exemptive Order Granting Conditional Exemption from the Broker Registration Requirements of Section 15(a) of the Securities Exchange Act of 1934 for Certain Activities of Finders.
Comment Letters Due This Wednesday 11/11/20
On October 7, 2020, the Securities and Exchange Commission voted to propose a new limited, conditional exemption from broker registration requirements for “finders” who assist issuers with raising capital in private markets from accredited investors.
If adopted, the proposed exemption would permit natural persons to engage in certain limited activities involving accredited investors without registering with the Commission as brokers.
The proposal would create two classes of finders, Tier I Finders and Tier II Finders, that would be subject to conditions tailored to the scope of their respective activities.
The proposed exemption would establish clear lanes for both registered broker activity and limited activity by finders that would be exempt from registration (and inspection, and examination, and supervision, and...).
I have received SO MANY emails from small firms that are up in arms over this Proposed Order that I wanted to be sure to remind everyone that the deadline for submitting Comment Letters is this Wednesday 11/11/20. Say your piece, or you will forevermore be relegated to holding your peace.
Your Links (sorry, won’t work on this site)
If you would like to submit a comment letter, just send an email to this link: rule-comments@sec.gov
If you would like to read comment letters that were already submitted, click on this link: https://www.sec.gov/comments/s7-13-20/s71320.htm
If you would like to read a dissenting statement dated 10/7/20 (the day the Commission voted 3-2 to propose this Exemptive Order) from Commissioner Allison Herren Lee, please click on this link: https://www.sec.gov/news/public-statement/lee-proposed-finders-exemption-2020-10-07
If you would like to read a dissenting statement dated 10/7/20 from Commissioner Caroline Crenshaw, please click on this link: https://www.sec.gov/news/public-statement /crenshaw-finders-2020-10-07
If you would like to read a supportive statement dated 10/7/20 from Commissioner Hester Peirce, please click on this link: https://www.sec.gov/news/public-statement/pei rce-finders-2020-10-07
If you would like to read a supportive statement dated 10/7/20 from Commissioner Elad Roisman, please click on this link: https://www.sec.gov/news/public-statement/rois man-finders-2020-10-07
If you would like to read McLaughlin Ryder's comment letter, please click on this link: MRI Comment Letter (11/11/20)
I hope this information is useful and, as always, please feel free to reach out if I can be of assistance.
And remember - if you're "done" and don't want to own/operate your own BD or IA anymore (but still want to work in the industry) or if you are ready to retire, please do not sell or BDW without calling me first! Thanks!
Stay safe. Stay strong. Stay in touch.
All the best,
Paige
Paige W. Pierce
President & CCO
McLaughlin Ryder Investments, Inc.
(801) 949-5577
paige@paige-pierce.com