SEC proposal to allow capital raisers to get paid legally

[Amy Wan]

PSA for syndicators: The SEC has published a proposal for unlicensed capital raisers (people with no broker dealer license) to get paid transaction-based compensation. You have 30 days to submit comments to the SEC for consideration or suggest changes.

Capital raising has been a hot topic in the past few years, so this is a big deal--especially in the multifamily syndication world.

SEC Proposal announcement here 

Proposal Text here

Easy to understand chart of the proposal

Note that this is more akin to making an introduction. The proposed exemption would NOT allow the capital raiser to help structure the deal or make any sort of statements about the quality of the deal (i.e. you can't say 'its a great deal').