The U.S. Securities & Exchange Commission published remarks by Chair Paul S. Atkins to the Small Business Capital Formation Advisory Committee, positioning the meeting around potential enhancements to Regulation A and a focused discussion on “finders” who introduce (and in some cases solicit) early-stage investors for small businesses. Atkins highlighted that the regulatory treatment of finder activity conducted outside a registered broker-dealer remains unclear, which can deter participation and restrict small businesses’ access to early funding. The remarks noted that SEC staff no-action letters have addressed only narrow fact patterns, leaving persistent gray areas. Atkins pointed to prior calls for a more formal framework, including a 2017 U.S. Treasury recommendation for the SEC to work with the Financial Industry Regulatory Authority and states, and an SEC proposed exemptive order issued for comment in October 2020 that has not been followed by further Commission action. He also cautioned that any committee recommendations on finders should avoid undermining public markets, given the objective of revitalizing initial public offerings.
U.S. Securities & Exchange Commission 2025-07-22
U.S. Securities & Exchange Commission chair calls for clearer rules for finders as Small Business Advisory Committee considers Regulation A changes
SEC Chair Paul S. Atkins addressed the Small Business Capital Formation Advisory Committee, discussing potential Regulation A enhancements and the ambiguity around "finders" connecting investors with small businesses. He stressed the need for a framework clarifying finder activities outside registered broker-dealers, referencing past recommendations and an unacted SEC proposed exemptive order. Atkins emphasized that committee recommendations should not undermine public markets while revitalizing initial public offerings.