EXEMPT:
“A person who acts as a business broker with respect to a transaction involving the offer or sale of all of the stock or other equity interests in any closely held corporation provided that such stock or other equity interest is sold to no more than one person, as that term is defined in the Act.”
– As quoted from 3 CCR 704-1:51-2.1.1 Paragraph B. Effective date of October 15, 2013.
From an email written by Mike Ertel
Co-Chair, AM&AA Licensure Task Force:
TO: ALL SPONSORS OF AM&AA’s CAMPAIGN FOR CLARITY
After a brief public hearing on Monday, August 26th, the Colorado Securities Commissioner, Fred Joseph, promulgated a new rule exempting “a person who acts as a business broker with respect to a transaction involving the offer or sale of all of the stock or other equity interests in any closely held corporation provided that such stock or other equity interest is sold to no more than one person”, from the state’s definition of a “broker-dealer”.
Details of this new rule are provided in the attachments.
Fred Joseph is a recent past-president of NASAA (North American Securities Administrators Association), and has been a long term friend of the Campaign for Clarity, and the urgent need to clarify – and hopefully, simplify – the complex, overlapping and unduly burdensome federal and state securities regulations that can impact business brokers and M&A advisors in the sale of any business that is structured as a securities transaction.
This is clearly a major accomplishment for Colorado business owners, and the professionals who advise them in the sale of their business. Congratulations – and thanks – go to John Zayac, Ron Chernak and the Colorado Association of Business Intermediaries for all of their diligent efforts in getting this across the goal line.
Colorado joins California and Ohio as the third state with a limited exemption for business brokers from compliance with state securities regulations, regardless of size.
We need to continue our efforts to secure similar exemptions by rule from all fifty states, and we need to re-double our efforts to pass HR 2274 to achieve a limited exemption for business brokers and M&A advisors from federal securities regulations.
We still need everyone’s support to:
- Reach out to your US Congressmen & Senators to support HR 2274, and
- Contribute your fair share to cover the legal costs of the Campaign for Clarity. A contribution / pledge card is attached for your convenience.
Mike Ertel, BSEE, MSIA, CBI, M&AMI, CM&AA
Attachments:
1. Colorado – Statement of Basis and Purpose
2. Colorado – Proposed Rule 51-2.1.1
3. Contribution – Pledge Card 2013A
