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SEC Small Business Advisory Committee to Meet Feb. 24 to Discuss Finders Regulation and Private Secondary Market

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Key takeaways

  • The Small Business Capital Formation Advisory Committee (an SEC advisory body) announced a public meeting for Feb. 24, 2026, at 10 a.m. ET at SEC Headquarters in Washington, D.C.
  • The committee plans to continue discussing a regulatory framework for "finders."
  • The meeting will also begin exploring the private secondary market.
  • The announcement was published as a press release on the SEC website (link included in the release).

Follow Up Questions

What is the SEC’s Small Business Capital Formation Advisory Committee and what does it do?Expand

The Small Business Capital Formation Advisory Committee (SBCFAC) is an SEC advisory committee created by the Small Business Advocate Act of 2016 that provides the Commission with diverse perspectives, advice and recommendations on rules, regulations and policy matters affecting small businesses and smaller public companies; it meets regularly (typically quarterly) and its public meetings, reports and recommendations are used to inform SEC rulemaking and policy work on small‑business capital formation.

Who are "finders" in the securities context and why might they need a regulatory framework?Expand

In securities, “finders” are people or firms paid to locate or introduce potential investors to issuers (often for private placements) without acting as a registered broker‑dealer; they typically only make introductions and do not negotiate or structure the deal. A regulatory framework is sought because the line between passive introductions and broker activity is fact‑sensitive; clear rules would reduce legal risk, protect investors, and define permissible activities and disclosure/qualification requirements for compensated intermediaries.

What is the private secondary market and how does it differ from public markets?Expand

The private secondary market is where investors buy and sell existing shares of privately held companies (secondary transactions) rather than buying newly issued shares; unlike public markets, these trades are typically less liquid, occur off‑exchange, have limited public price discovery, and are subject to transfer restrictions and securities‑law limits on resale and disclosure.

Will the public meeting allow for public comment or participation, and how can people attend or submit comments?Expand

Yes. SBCFAC meetings are public: the SEC typically holds them at SEC headquarters and provides a public webcast; the committee’s meeting notices/press releases explain how to attend in person or by webcast and how to submit written statements in advance. For a given meeting (e.g., Feb. 24, 2026) check the SEC press release/meeting notice for specific RSVP, webcast link, or submission email/instructions.

What kinds of actions or rule changes can result from the committee’s discussions?Expand

The committee itself cannot directly change SEC rules, but its advice and formal recommendations can prompt SEC staff or Commissioners to propose rulemaking, issue interpretive guidance or recommend exemptions; its work can lead to SEC rule proposals, exemptive orders, or staff guidance that change how rules are applied to small‑business capital formation.

Where can meeting materials, agendas, and the transcript or recording be found after the meeting?Expand

After the meeting the SEC posts meeting materials (agenda, memos), and usually posts a transcript and a webcast recording on the SEC website under the committee’s meetings/events page; check the SBCFAC page and the specific meeting press release for links to materials, and the SEC’s newsroom meeting‑events pages for archives.

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