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Welcome to SEC Roundup, a bimonthly video collection by former Securities and Alternate Fee senior trial counsels Nick Morgan and Tom Zaccaro, founders of the nonprofit advocacy group Investor Selection Advocates Community.
A dealer who holds shares in a personal firm on behalf of purchasers, or a fund that invests in a single, counts as just one shareholder within the firm.
The SEC is contemplating a rule that may look by means of brokers and funds so that every consumer or investor would rely as a shareholder.
John Gulliver, govt director of the Committee on Capital Markets Regulation, talks with Morgan and Zaccaro about why this is able to imply many non-public corporations would exceed the utmost of two,000 shareholders for a personal firm and must register as a public firm.
Such an modification to the definition of “held of file” for functions of Part 12(g) of the Securities Alternate Act would have enormous implications for personal corporations and the funds and brokers that put money into these non-public corporations.
See the video above for the dialogue with Gulliver.
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