Legal

• 506B and 506C
  • 95% of syndicators rely on exemption
  • Provide safe harbor if they comply to the rules
  • Pre-empt state law

Want to be just a capital raiser?

• New rules for Capital Raisers 2021
  • No bad actors
  • Can't handle investor funds
  • Introduce to issuer
  • Can't prep sales material. No marketing their marketing
  • Can't provide your own analysis of their security
  • Can't provide financing to provide for their security
  • Not allowed to make opinion
  • Required to give disclosure
• Tier 1
  • Referring investors to single transaction single year etc
  • Prohibited from talking to investor about issuer or deal
  • Can only do it once in a 12 month period, not for building business
• Tier 2
  • Id and screen and distribute to investors, coordinate meetings
  • No independent analysis or if it's a good fit
  • Must get written acknowledgement of disclosure from investment