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Common Myths About Finders, Solicitors, Unregistered Broker-Dealers, and the “Issuer Exemption”


In the financial services industry, whenever money changes hands, everyone involved in the process wants to get paid. Investors understand that registered investment advisors and broker-dealers are compensated for their role in a transaction, whether by receiving an advisory fee based on assets under management or a commission based on the sale price of the security.

However, some capital raising activities in the private fund space do not fit neatly into one of these boxes, instead of falling into a murky regulatory area of finders, solicitors, issuer marketing efforts, and unregistered brokerage activity. Jaqueline Hummel, Managing Director at Foreside, will walk readers through the uncertainties that firms may have when deciding whether or not the Issuer Exemption applies to their firm.  Check out the “to-do” and the “Don’t” list for companies that prefer to stay out of the brokerage area.


NSCP Currents 10-20

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