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Hello: My name is ***** ***** I am an attorney. Please give me a moment to review your question. I may ask some questions to clarify issues.
This sounds like you want to know the difference of when a company would pay a finder's fee to find investors and whether that "finder" is required to have a security's broker's license. Possibly, you can clarify so I can see if I can help you.
Here is the general rule: If the "finder" is receiving compensation based on commission, then the finder must have a license. If the finder is paid on an hourly or flat fee basis, then the finder does not require a license.
For example, according to the SEC, each of the following individuals and businesses may need to register as a broker, depending on a number of factors:
If you need further help, just let me know.
Hi Gary: Many consultants/finders operate in a grey area. Most likely if the SEC scrutinized these types of agreements, it would find that a broker's license was/is required. Anytime someone receives a commission, it could lead to SEC scrutiny.
P.S. You can always request me for future questions by putting my name first on the question.