"Finders," those who connect potential investors with issuers (e.g., startups seeking funding) within private markets, would not be required to register as brokers under recently proposed Securities and Exchange Commission (SEC) exemptions. Currently, individuals who work to connect investors and issuers — including simply providing issuers with a contact list and regardless of whether any advice is provided or whether the connection is made on behalf of one of the parties to any investment — may be required to register with the SEC as a broker.

For the first time, individuals with defined measures of professional knowledge, will be allowed to participate in private capital markets without having to meet the traditionally required income or net worth levels. The U.S. Securities and Exchange Commission (SEC) has broadened the definition for who the commission views as an ‘accredited investor’ and a ‘qualified institutional buyer’.

The U.S. Securities and Exchange Commission (SEC) recently released guidance through its Division of Corporation Finance to address the risks of investing in companies that are based in or have a majority of their business operations in the People’s Republic of China. This action continues a trend of expanding regulation of investments related to China, and the SEC’s statement clarifies that the purpose of the disclosures is to protect investors from recently-enacted restrictions by the Chinese government on China-based companies in regard to raising capital from foreign investors.