I am familar with an independent film maker who is looking for investors. I have a person that has indicated an interest. The problem is that I want to be compensated, in some way?
Can I find an investor for a film maker and charge a finder's fee, or commission.
Enter into an agreement whereby the film maker is obligated to pay you upon funding.
Lamont, I am am providing information only, not legal advice; please consult a practicing attorney for that. However, my understanding is that federal and state law does not permit engaging in broker-dealer activities without registration. Securities regulators have taken action against both finders and their employers for engaging in such activities, particularly since 2005-06.
It's a fuzzy line and a number of law firms have written about it, with differing advice, in the past several years. Among them, Venable LLP has a March, 2013 article entitled, "Finders may pose
I note that other legal commentators are more conservative in this area. One such firm, Tucker Ellis, has a pdf you can find if you search "Finders' fees: folklore and fact on regulation."
Thank you very much Joseph. I came to the same conclusion. That is why I raised the question. Thanks again.