SEC Tag

Legal Update / 24.04.2014

A recently issued SEC no-action letter provides further clarity on the applicability of broker-dealer registration requirements to merger and acquisition brokers (M&A brokers). The no-action letter is issued as Congress considers legislation to exempt certain M&A brokers from broker-dealer registration requirements. The Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2013 amends the Securities Exchange Act of 1934 to allow M&A brokers who perform services in connection with the transfer of ownership of smaller privately held companies to register with the Securities and Exchange Commission (SEC) by filing an electronic notice.
Legal Update / 01.11.2013

Entrepreneurs may soon be able to reach a new pool of potential investors through crowdfunding websites. On October 23, 2013, the SEC issued proposed rules under the Jumpstart Our Business Startups Act (the “JOBS Act”) to permit the offering and sale of securities through crowdfunding. (http://www.sec.gov/rules/proposed/2013/33-9470.pdf). Crowdfunding, an evolving method of raising funds online, has helped generate financial support for a wide range of projects through sites like Kickstarter (www.kickstarter.com). But so far, the securities laws have limited crowdfunding to a donation-based model.