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What Does Reg A+ Mean for Broker Dealers?

by | Jan 24, 2014 | Firm News, Regulation A

RICHMOND, VA – The proposed revisions to Regulation A under Title IV of the JOBs Act, commonly referred to as “Reg A+”, present the potential for a watershed event in America’s securities markets – creating an “intermediate” class of public securities between private placements under Regulation D and those registered securities typically listed on national exchanges. For issuers, this means new channels for capital raising. For broker-dealers, it means the ability to get back big in the public, traded securities game which has been, for at least a decade, dominated by much larger broker-dealers and Wall Street. This allows for new lines of revenue from both sales and trading of these securities. Further, as the rules are proposed, there is a very meaningful role for broker-dealers to play legally to allow issuers to maximize the flexibility that Reg A+ affords in capital raising.

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