Welcome to SEC Roundup, a bimonthly video collection by former Securities and Change Fee senior trial counsels Nick Morgan and Tom Zaccaro, founders of the nonprofit advocacy group Investor Selection Advocates Community.
On this episode, Morgan talks with the Various Funding Administration Affiliation’s Suzan Rose concerning the not too long ago finalized SEC guidelines relating to securities sellers, which Rose says develop the scope of broker-dealer registration to entities not historically thought of as such, marking a considerable departure from longstanding practices.
Rose underscores the potential ramifications for companies, significantly fund managers and personal funds, whose operations might not align effectively with broker-dealer necessities.
A key concern raised is the open-ended nature of sure provisions inside the guidelines, leaving room for interpretation and granting the SEC appreciable discretion of their software. Whereas some problematic requirements have been dropped from the ultimate rule, the remaining provisions nonetheless pose challenges, particularly relating to the potential classification of fund managers as sellers.
See the video above for the dialogue with Rose.