Fog May Be Lifting Around Finders

Law360, New York (April 16, 2014, 11:25 AM EDT) -- This article assesses the murky regulatory world of when and whether a U.S. person can raise capital and receive transaction-based compensation, i.e., compensation tied to the amount of capital raised, without registering as a broker-dealer in the United States.[1]

It observes that the staff of the U.S. Securities and Exchange Commission’s aggressive stance on when finders have to register as broker-dealers has recently encountered judicial disavowal by U.S. district courts (and certain states’ high courts).

In light of these decisions (discussed below), it seems that a...
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