David Blass, Chief Counsel of the SEC’s Division of Trading and Markets recently addressed the ABA’s membership at its annual meeting, and commented on the need to consider closely whether certain private funds, finders and other intermediaries should register as broker-dealers. Following the SEC Staff’s recent no-action letters to AngelList and FundersClub, Blass’s comments are… Continue Reading
Category Archives: Broker-Dealer Registration
Subscribe to Broker-Dealer Registration RSS FeedAngelList Receives No-Action Letter Guidance
Posted in Broker-Dealer RegistrationThe Division of Trading & Markets also issued no-action letter guidance to AngelList in which the Staff indicated that it would not recommend enforcement action for failure to register as a broker-dealer if AngelList and its affiliates were to establish an internet-based platform to facilitate angel investing by accredited investors. An affiliate of AngelList that… Continue Reading
FundersClub Obtains Broker-Dealer Registration No-Action Relief
Posted in Broker-Dealer Registration, Crowdfunding, Private Placements, Rule 506 Rulemaking, SEC NewsOn March 26, 2013, the SEC’s Division of Trading and Markets provided no-action relief to FundersClub Inc. and FundersClub Management LLC, indicating that the Division would not recommend enforcement action under Section 15(a)(1) of the Exchange Act if FundersClub and FundersClub Management LLC operated a platform through which its members could participate in Rule 506… Continue Reading
New JOBS Act-related Broker-Dealer FAQs Published
Posted in Broker-Dealer RegistrationThe Staff of the SEC’s Division of Trading and Markets recently published a series of FAQs addressing certain broker-dealer matters arising in connection with Title II of the JOBS Act. The FAQs are available here: http://www.sec.gov/divisions/marketreg/exemption-broker-dealer-registration-jobs-act-faq.htm. Title II of the JOBS Act formalizes the guidance that has been provided by the SEC in various no-action… Continue Reading
ABA Task Force Tries Again on “Finder” Issue
Posted in Broker-Dealer RegistrationFor several years, a task force within the Business Law Section of the American Bar Association has tried to get the attention of federal and state regulators to address an issue that comes up from time to time in private placements and even in an occasional public offering. What do you do about a person… Continue Reading