SEC Proposes Exemptive Relief for Finders to Receive Transaction-Based Compensation Without Having to Register as a Broker-Dealer

By Mitchell C. Littman | October 21, 2020 |

On October 7, 2020, the U.S. Securities and Exchange Commission (the “SEC”) voted to propose a conditional exemption from broker registration requirements for “finders” who assist issuers with raising capital in private markets from accredited investors. If enacted, the exemption would permit individuals to engage in certain limited capital-raising activities for privately held companies and…

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SEC Amends “Accredited Investor” Definition

By Mitchell C. Littman | September 14, 2020 |

On August 26, 2020, the U.S. Securities and Exchange Commission (SEC) adopted amendments expanding the definition of “accredited investor” to allow additional categories of investors to invest in unregistered private offerings. The new definition moves beyond the long-standing reference to wealth and income to determine whether individuals may be deemed accredited investors, adding established, objective…

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COVID-19: SEC and FINRA Issue Temporary Relief on Regulatory Obligations and Offers Guidance on BCP for Broker-Dealers

By Mitchell C. Littman | March 26, 2020

As the novel coronavirus (“COVID-19”) continues to spread and its impact on the U.S. financial market rapidly intensifies, brokers and dealer are presented with significant financial or operational challenges and risks. The SEC started taking action as early as of February 2020, granting continued assistance to and relief for advisors impacted by COVID-19.[1] On March…

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