Sichenzia Ross Friedman Ference LLP Partner Quoted in The ‘PIPEs Report’ on The Finder Dilemna
Sichenzia Ross Friedman Ference LLP Partner Gregory Sichenzia was quoted in the cover feature of the December 1 issue of The PIPEs Report which provided a discussion about the uncertain regulatory status of “finders” who arrange private offerings by introducing issuers to potential investors.
This issue was raised for the second straight year by the participants in the SEC’s annual Government-Business Forum on Small Business Capital Formation that was held in September 2004. At the Forum, the attendees made their concerns about finders a central issue and urged the SEC to address and clarify the regulatory status of these persons. They further suggested that the SEC staff should focus on whether to create an exemption from broker-dealer registration requirements or instead issue a new regulation that would allow finders to register with the SEC under a simplified format.
When asked about the role of finders and the proper manner in which the SEC should address this issue, Mr. Sichenzia noted that while issuers had a practical need for finders, there was certainly a justification for some kind of regulation and oversight of these persons. Mr. Sichenzia further analyzed the need for finders and the potential benefit and burden to the issuers that employ finders. He stressed that “Finders can be a blessing or a curse” and emphasized that the more reputable finders “would not mind being regulated [while regulation] may flush out some of the bad ones.”
According to The PIPEs Report and Privateraise.com, at December 1, 2004, Sichenzia Ross Friedman Ference LLP has represented public issuers in 32 PIPE transactions totaling $112.4 million. The Firm has continuously been ranked first in the nation in representing issuers in PIPEs transactions since the period ended June 30, 2004.
About Sichenzia Ross Friedman Ference LLP
Sichenzia Ross Friedman Ference LLP provides experienced professional representation in all matters involving the securities industry as well as general corporate and litigation matters. Our clients range from start-ups to established, listed companies. They include private and public corporations, partnerships, broker-dealers, bank-affiliated broker-dealers, investment advisors, registered personnel, public and corporate customers and investors, partnerships and other entities. We also advise institutional investors on transactions involving complex securities law considerations. Our areas of expertise include corporate and commercial transactions, securities litigation, and arbitration, administrative practice before regulatory agencies, mergers and acquisitions and broker-dealer regulation. For additional information about Sichenzia Ross Friedman Ference’s nationally ranked PIPEs practice, go to www.srffllp.com.