Regulation of finders was on the agenda when the SEC’s Small Business Capital Formation Advisory Committee (SBCFAC) met. Finders are intermediaries who help connect issuers with investors in private offerings, especially in smaller fundraisings that often do not implicate traditional broker-dealer conduct. The committee last met to discuss the
SEC small business committee continues ‘finders’ discussion
“Finders,” or those who find capital for small businesses but are not necessarily registered broker-dealers, have operated in a regulatory gray area.