Path to finalizing finders exemption up in the air (Law360)

Finders assist private funds with raising capital and a rule proposal providing them an exemption from registration may or may not be on the SEC’s new agenda. The proposed exemption would allow transaction based compensation for finders not registered as a broker-dealer, which would be dependent upon their activity as defined by the rule. However, FrontLine’s Founder and President Amy Lynch does not think the SEC would view finalizing the exemption as a priority. Ms. Lynch adds that new SEC Chairman Gary Gensler does not have the same deregulation views as his predecessor and would likely be inclined to push for more control of the industry as opposed to acting on the proposal. See Law360 (subscription required), “In-Limbo Finders Exemption Legitimizes Market’s Open Secret“