• New Guidance on Broker-Dealers vs. Finders
  • May 27, 2010 | Authors: Jeffrey Blomberg; David S. Guin
  • Law Firms: Withers Bergman LLP/Withers LLP - Greenwich Office ; Withers Bergman LLP/Withers LLP - New York Office
  • As the economy begins to recover from a severe recession, new companies are being formed and existing companies are trying to grow their businesses. With bank credit still scarce, many companies turn to "finders" to help identify potential investors. Finders are generally defined as intermediaries who help locate investors but who do not register with the SEC as broker-dealers under the Securities Exchange Act of 1934 (the "Exchange Act").