House Bill Seeks to Simplify SEC Registration for M&A Business Brokers - Bloomberg Law

"A bill recently introduced in the House calls for simpler registration with the Securities and Exchange Commission for brokers that facilitate mergers and acquisitions of private companies.

H.R. 2274, unveiled by Rep. Bill Huizenga (R-Mich.) June 6, would amend Section 15(b) of the 1934 Securities Exchange Act to allow such brokers to register with the SEC through a public notice filing. The bill aims to reduce “regulatory costs incurred by the buyers and sellers of smaller privately held companies that need to use professional business brokerage services,” Huizenga said in a statement e-mailed to BNA.
The bill would apply to brokers who facilitate M&A deals involving companies with annual earnings of less than $25 million and annual gross revenue of less than $250 million. According to an aide for Huizenga, M&A brokers are required to register as broker-dealers with the SEC and to be members of the Financial Industry Regulatory Authority. However, many such brokers, who simply negotiate the terms of M&A deals between small firms, are not even aware of the requirement."

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