Nearly a decade ago, the SEC Staff issued a no-action letter that enabled investment bankers who limit their services to M&A transactions involving private companies to avoid.
While M&A brokers previously faced uncertainty with respect to federal broker-dealer registration requirements, a new statute provides a clear and unambiguous exemption based on specified, limited activities.
President Biden signed Consolidated Appropriations Act of 2023 H.R. 2617 into law, providing federal statutory exemption from securities law broker registration for merger and acquisition MA brokers effective March 29 2023. SEC M&A Brokers No-Action Letter published by SEC.