Buzz Archive:
The SEC's recent no-action letter to Country Business, Inc. (2006 SEC No-Act LEXIS 669)

by Kenneth B. Abel, 6/19/2007

Country Business represented itself to the SEC as a "business broker for small businesses" and that it provided services that "are more extensive than simply acting as a finder of potential purchasers of the business." Country Business then went on to describe a fairly typical business broker transaction (e.g., we're selling assets, not stock, but the parties may end up selling stock; we're getting transaction based compensation; etc.)

The SEC granted the no-action relief (the no-action letter is noteworthy in that it is the first time in many years that the SEC has formally addressed the subject):

Based on the facts and representations set forth in your letter, the Staff will not recommend enforcement action to the Commission under Section 15(a) of the Exchange Act if CBI engages in the activities you describe without registering as a broker-dealer.