by David R. Burton
The Heritage Foundation
February 19, 2014
Backgrounder
Business brokers make the market for closely held small businesses more efficient, by helping entrepreneurs to sell their business for full value and by helping aspiring business owners find business oppor¬tunities that match their skills and financial resources. The current Securities and Exchange Commission (SEC) position on who should be required to register as a securities broker-dealer is overbroad and significantly exceeds the scope of the statutory requirement. The SEC or Congress needs to clarify that business brokers are not subject to the burdensome securities broker-dealer regulations. The best means of accomplishing this is to exempt business brokers helping to buy and sell small businesses from the broker-dealer requirements. Proposals to register and reasonably regulate business brokers are constructive, but not the best solution.



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