Unregistered Brokers May Bring Aiding And Abetting Liability

Law360, New York (March 27, 2013, 10:58 AM EDT) -- Some issuers, including investment, real estate, venture capital and private equity funds, as well as operating companies, use finders or other consultants who are not registered as broker-dealers to raise capital. Although there is a very narrow exception for finders who do no more than provide a list of potential investors and receive a fee for the list of names not based on the success of the offering, many consultants operate outside of the limits of the exception. Fund managers and company officers have understood that...
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