In early February the Securities and Exchange Commission’s Division of Trading and Markets issued a no-action letter [PDF] stating that mergers and acquisitions brokers wouldn’t necessarily face enforcement action if they facilitated a transfer of ownership of a privately-held company without registering as a broker-dealer.
“The division would not recommend enforcement action to the Commission under Section 15(a) of the Exchange Act if an M&A Broker were to effect securities transactions in connection with the transfer of ownership of a privately-held company under the terms and conditions described in your letter without registering as a broker-dealer pursuant to Section 15(b) of the Exchange Act,” the letter read.
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