Bill > S4493

This bill aims to amend the Securities Exchange Act of 1934 to create a safe harbor for private placement brokers and finders. The key provisions are: 1. The bill requires the SEC to promulgate regulations on registration requirements for private placement brokers, which cannot be more stringent than those imposed on funding portals. It also requires the SEC to promulgate regulations for national securities associations to allow private placement brokers to become members with reduced membership requirements. 2. The bill defines a "private placement broker" as a person who receives transaction-based compensation for introducing issuers and buyers in connection with the sale of a business or the placement of securities in exempt transactions, but does not handle funds/securities or engage in activities requiring investment adviser registration. 3. The bill defines a "finder" as a person who receives limited transaction-based compensation (up to $500,000 per year, or in connection with transactions up to $15 million for a single issuer or $30 million for multiple issuers) and is exempt from broker registration requirements. 4. The bill also limits the ability of states to impose greater requirements on private placement brokers and finders than those established under the federal law.

Housing and Urban Affairs

https://www.congress.gov/bill/118th-congress/senate-bill/4493/all-info