New Law Exempts M&A Brokers from SEC Registration

Jones Day – Congress recently amended the Securities Exchange Act of 1934 (the “Exchange Act”) to exempt certain “M&A brokers” from registration as broker-dealers with the U.S. Securities and Exchange Commission. While the new exemption essentially codifies previously granted no-action relief from the SEC’s Division of Trading & Markets, its terms are narrower than the prior relief, applying only to M&A transactions for small entity issuers. The new legislation also does not preempt state law registration requirements for M&A brokers.

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