Contact us with your California corporate & securities law questions (949) 353-6347 or Contact us here

California Finders Exemption Has Yet To Catch On

Last October, Governor Brown signed AB 667 (Wagner) into law.  The bill, which was thefor "finders" product of the efforts of the Corporations Committee of the Business Law Section of the California State Bar, created a statutory "finders" exemption from California's securities broker-dealer registration requirement.  It is important to recognize that the bill defines "finder" with particularity and not everyone who thinks she is a finder will meet the definition.  For example, the bill includes a list of eight "thou shalt nots" that would disqualify a would-be finder from meeting the statutory definition.  A finder must also obtain and retain the informed, written consent of each person introduced or referred by the finder to an issuer.

The exemption is also conditioned on filing of an initial and annual notices with the Commissioner of Business Oversight and the payment of a fee.  I understand that to date, only one notice has been filed.  It's premature to call the new exemption a bust.  One possible impediment to use of the exemption may be the lack of a corresponding federal exemption.

Share on:

ANY QUESTIONS REGARDING CALIFORNIA CORPORATE AND SECURITIES LAW? CONTACT US DIRECTLY

We offer expert advice with the intricacies of California law.

Our years of experience and expertise allow us to help clients navigate the business laws in California.

CONTACT US

Get the latest news and analysis about California Corporate & Securities law. Subscribe to our newsletter today!

We respect your email privacy

ABOUT OUR AUTHOR

30172DBAB0084D3A8F39D7AF0A8E79BC.ashx Keith Paul Bishop
Partner at Allen Matkins
(949) 353-6328
 Contact me
Learn More About Keith

nominee-badge

Get the latest news and analysis about California Corporate & Securities law. Subscribe to our newsletter today!

We respect your email privacy

CATEGORIES

see all

RECOGNITION

YOUTUBE

FACEBOOK