The U.S. Securities and Exchange Commission (SEC), primary responsibility is to enforce the federal securities laws and regulate the securities trade,
The SEC has a three-part mission:
1. To Protect Investors
2. Mantain fair and orderly exchange and effcient markets
3. Facilitate capital formation
On January 31, 2014, the SEC issued a revolutionary no-action letter (ACTION LETTER), which supports intermediaries advising privately held companies in M & A( M & A) transactions need not to be registered as a broker-dealer.
It opens the door for brokers representing only private businesses in M & A transactions to withdraw their broker-dealer registration with the Securities and Exchange Commission.
Intermediaries advising private businesses on equity transactions who are compensated through success fees fall right into the definition when the transaction is structured as an asset sale.
The No-Action Letter
This Letter spells out that the SEC's Division of Trading and Markets will not recommend enforcement action to compel registration by brokers who limit their securities activity to assist in transaction that result in the transfer of ownership of privately-held companies M & A. The transfer of ownership may be a stock sale, merger, issuance of new shares, joint venture or another business combination. There is no limit to the size of the transaction.
I highly recommend M & A brokers understand the criteria set out in the no-action to determine if the qualify for this relief from the SEC. No-Action Letter Guidelines
Commercialcapitalplus
Malia Ventures Inc.
Joshua Mosshart BIO
