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 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 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 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 MoreKim Kardashian has agreed to pay a $1.26 settlement to the SEC for not disclosing that she was paid $250,000 to tout a crypto asset on her Instragram account. However, the rules that she violated are equally applicable to other issuers, including real estate fund sponsors.
Read MorePeople raising money for a small business or real estate investment may be surprised that they are selling investment contracts subject to federal and state securities laws.
Read MoreThe Securities and Exchange Commission has proposed a rule that would, under limited circumstances, allow unlicensed individuals to be compensated finders in certain securities transactions.
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