SEC Proposes Exemption from Broker-Dealer Registration for Finders in Private Placements
On 7 October 2020, the U.S. Securities and Exchange Commission proposed a conditional exemption, operating as a non-exclusive safe harbor, from the broker registration requirements of Section 15(a) of the Securities Exchange Act of 1934 to permit natural persons to engage in certain limited activities on behalf of issuers. The proposing release was published in the Federal Register on 13 October, triggering a 30 day comment period.
If adopted as proposed, the exemption would represent a seismic shift in broker registration requirements and, while it would be a welcome development for some, it raises important questions for industry participants.
This event will feature an in-depth discussion of the proposed exemption.