Lately I have gotten a number of questions about raising capital for small companies. It usually starts with a question about someone who has good connections and believes that she can raise money for the company but wants to receive some type of compensation.
On October 17, 2016, the SEC approved the FINRA Capital Acquisition Brokers (“CAB”) rule set. As I reported a few months ago, these rules are intended for a limited group of entities that advise companies and private equity firms on capital raises and corporate transactions and act as placement agents for companies and private funds […]
The SEC has sent the FINRA propose rules for capital acquisition brokers out for comment. Comments are due on April 13, 2016. As you may remember these rules are the outcome of the No-Action letter previously issued by the SEC relating to the registration of a finder as a broker-dealer. Under the proposed rules capital […]
Please follow this link for a Client Alert I wrote dealing with the JOBS Act and Research.
I have started a new Blog devoted to the developing crowdfunding industry. With the passage of the JOBS Act this once controversial concept has become a reality. Please add Crowdfunding LawBlog to your follow list. I will continue to focus on broker-dealers, investment advisers and funds on this blog.
So are we to understand that regulation is a good thing and necessary to protect investors in the crowd? Well it appears so. On March 23, 2012, at 2:29 p.m. EDT Marketwire issued a press release announcing the creation of the Crowdfund Intermediary Regulatory Association (CFIRA). Its mission is to provide investors “protection and market […]
If you had asked me a year ago if crowd investing would ever become law I would have told you absolutely not. There was no way Congress, which had been so hard on the regulators for allowing the Madoff disaster, would open the floodgate for all sorts of fraudulent activity. Never would Congress fall for […]
Last week in my post on the Startup Exemption I wrote about hearings starting in Congress. Having reviewed the startup exemption proposal that is presently circulating on the Internet and reading some of the testimony from last week’s hearings I realize what the main problem it is not the concept of the startup exemption. It […]