Firms that advise companies and private equity funds, but don’t maintain customer accounts, could soon escape their current regulatory limbo. The Financial Industry Regulatory Authority is soliciting public comments on a proposed rule set that eases the regulatory burden and registration requirements for firms that meet a new definition of “limited corporate financing broker.”
Some FINRA regulated firms are solely corporate financing firms that advise companies on mergers and acquisitions, advise issuers on raising debt and equity capital in private placements with institutional investors, or provide advisory services on a consulting basis to companies that need assistance analyzing their strategic and financial alternatives.
