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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Business Law
Satisfied Customers: 19023
Experience:  B.A.; M.B.A.; J.D.
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SEC rules on broker-dealer of finder fees. my friend is

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SEC rules on broker-dealer of finder fees. my friend is currently helping his friend to looking for funding for the angel investment. he is an American and his friend's business is also an American business. if he helped his friend successfully find investors,
as return, can he request some % of stock equity as compensation without violation of SEC broker-dealer rule? if so, what is the best way to avoid that. thanks
Submitted: 1 year ago.
Category: Business Law
Expert:  Phillips Esq. replied 1 year ago.
Hello: This is PhillipsEsq. I am a licensed Attorney and I will be assisting you today.
SEC rules on broker-dealer of finder fees. my friend is currently helping his friend to looking for funding for the angel investment. he is an American and his friend's business is also an American business. if he helped his friend successfully find investors,
as return, can he request some % of stock equity as compensation without violation of SEC broker-dealer rule? if so, what is the best way to avoid that. thanks

Response: Regrettably, this arrangement would violate the SEC broker-dealer rule and finder's fee. See the PDF below for more information:
http://www.sec.gov/info/smallbus/acsec/finders-and-other-financial-intermediaries-yadley.pdf

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