Source: https://es.scribd.com/document/383894396/Let-Entrepreneurs-Raise-Capital-Using-Finders-and-Private-Placement-Brokers-by-David-R-Burton
Timestamp: 2019-04-23 09:52:01+00:00

Document:
BACKGROUNDER entitled "Let Entrepreneurs Raise Capital Using Finders and Private Placement Brokers by David R. Burton July 2018.
Notice: Self-regulatory organizations; proposed rule changes: Fixed Income Clearing Corp.
small businesses to find capital by making introductions to investors.
Street entrepreneurs to raise capital. ness owner.
of law, public accounting, insurance brokerage, etc.); as a Main Street to launch or grow their businesses.
amount of capital that they helped the business owner to raise. preneurs to raise capital.
Foundation or as an attempt to aid or hinder the passage of any bill before Congress.
2,300 words, the core of the broker–dealer concept tors does not constitute effecting securities transactions.
istration illustrates this point.5 ferent than the position it has adopted in this century.
statutory definition of a broker, to wit, “any person and what activities unregistered persons may engage in.
part” in a securities transaction. Presumably, so too ing of the law 9 and bad public policy.
1.	Particularly by those familiar with the work and proposals of the American Bar Association Task Force on Private Placement Broker-Dealers.
http://www.sec.gov/info/smallbus/2009gbforum/abareport062005.pdf (accessed June 27, 2018).
http://www.sec.gov/info/smallbus/acsec/finders-and-other-financial-intermediaries-yadley.pdf (accessed June 27, 2018).
April 2008, http://www.sec.gov/divisions/marketreg/bdguide.htm#II (accessed June 27, 2018).
6.	Securities Exchange Act, § 3(a)(4).
noaction/2014/ma-brokers-013114.pdf (accessed June 27, 2018).
of the law and the varying factual situations, this is unsurprising.
of interest between the finder or private placement quandary of guessing whether the person will deliver.
cipal—finding capital. With other forms of compen- then the small business will have the means to pay.
and their regulators do not regard transaction-based lated Wall Street firms.
http://www.williamsmullen.com/sites/default/files/wm-url-files/Chadwick%20-%20Finders%20Sleepers.pdf (accessed June 27, 2018).
is a clear conflict of interest because the broker is representing opposite parties in the same transaction.
13.	Most notably, § 10 of the Securities Exchange Act.
and without their assistance it is unlikely that a great of finders.
ent enough to qualify as accredited investors. ulation of private placement brokers may make sense.
find investors. of transactions in any year.
15.	17 Code of Federal Regulations § 230.501(a) (2016).
SEC’s creation of regulatory uncertainty.
115.11, “Finder Registration and Activities,” (2017), http://txrules.elaws.us/rule/title7_chapter115_sec.115.11 (accessed June 27, 2018).
(2011), https://www.law.cornell.edu/cfr/text/17/275.203A-3 (accessed June 27, 2018).
https://www.congress.gov/bill/115th-congress/house-bill/6127 (accessed June 27, 2018).
21.	Securities Exchange Act of 1934, proposed § 15(p)(4)(A)(i). Note: § 15 of the Securities Exchange Act is codified at 15 U.S. Code § 789(o).
23.	Ibid., proposed § 15(p)(3) of the Securities Exchange Act of 1934.
24.	Ibid., proposed § 15(q)(1) of the Securities Exchange Act of 1934.
25.	Ibid., proposed § 15(q)(3) of the Securities Exchange Act of 1934.
26.	Ibid., proposed § 15(p)(1) of the Securities Exchange Act of 1934.
27.	Ibid., proposed § 15(p)(2) of the Securities Exchange Act of 1934.
28.	Ibid., proposed § 15(q)(2) of the Securities Exchange Act of 1934.

References: § 3
 § 10
 § 230
 § 15
 § 15
 § 789
 § 15
 § 15
 § 15
 § 15
 § 15
 § 15