The SEC recently announced that it would be revisiting the finder exemption from broker-dealer registration first proposed in 2020. If adopted an exemption would simplify capital raising for small business, real estate sponsors, and early-career musicians by permitting success-based compensation to finders under limited circumstances. While this development is promising, for now transaction-based compensation continues to be unlawful.
Read MoreLaunched in the UK in 2018, Hipgnosis Song Fund was touted as a groundbreaking opportunity for investors and musicians alike. By buying song catalogs directly from artists, Hipgnosis provided musicians with immediate cash. The Fund offered investors the opportunity own a piece of music history and receive long-term predictable income that wasn't correlated with the stock market. Although the Fund might have looked like an investment in artists and their music, in the US, many investments in artists and their music are securities. Learn how musicians can unwittingly find themselves needing to navigate the complex web of securities laws.
Read MoreIssuers who don't use licensed brokers to sell their securities are best served by complying with the issuer exemption under Rule 3a4-1.
Read MoreCrowdfunding is a popular form of fundraising for musicians and small business because it helps build a following while also raising money. However, it’s important to know when crowdfunding becomes subject to federal securities laws and what to do about it.
Read MoreNearly five years after it was first proposed, the SEC appears to be returning its attention to the finder rule proposed during the the first Trump Administration.
Read MoreWhether it be for a startup, artistic endeavor, or real estate investment, you may have to comply with securities laws. Learn why securities law can apply in unlikely situations and how having an experienced securities attorney on your team can help you navigate the fundraising minefield.
Read MoreSecurities promoters most provide complete disclosure of the amount and conditions relating to compensation paid for the endorsement, whether cash, crypto, equity, products, or anything else of value.
Read MoreAccording to a recent SEC report, Rule 506 continued to be the most popular exeemption for real estate securities offerings in 2023.
Read MoreReal estate sponsors and other companies that sell their own securities must take care to ensure that their personnel aren't acting as unlicensed broker-dealers. Rule 3a4-1 provides a safe harbor for issuer personnel involved in selling securities. Read our article to learn about Rule 3a4-1 and best practices for issuers that sell their own securities.
Read MoreInvestors who acquire real estate securities from an issuer or sponsor may have to hold their securites for a year to avoid being considered presumptive underwriters.
Read More