Finder
A person paid to introduce investors to an issuer, without doing more.
What is Finder?
Finders introduce potential investors to issuers, typically in private placements, without negotiating terms, handling funds, or advising. Treatment varies by state: some require finder registration, and a finder who takes transaction-based pay or starts selling risks acting as an unregistered agent or broker-dealer.
Finder: a worked example
A person paid a percentage of every dollar they bring into a private offering is very likely acting as an unregistered agent.
More terms in Uniform Securities Act & Registration
Uniform Securities Act (USA)
The model state securities law most states' 'blue sky' statutes are based on.
State Securities Administrator
The official or agency that enforces a state's securities act.
Person (USA Definition)
Anyone who can be held legally responsible - individuals and organizations.
Investment Adviser (USA Definition)
Advises on securities, as a business, for compensation.
Excluded from the Investment Adviser Definition
Banks, incidental professionals, broker-dealers, and publishers are not advisers at all.
Exemptions from State Adviser Registration
An adviser with no office in the state and only institutional or very few clients there.
De Minimis Exemption
No place of business in the state and fewer than 6 clients there in 12 months.
Federal Covered Adviser
An adviser registered with the SEC rather than the states.
All Uniform Securities Act & Registration terms · Full glossary