Metro’s registered representatives are registered, licensed, and supervised by GT Securities Inc., a registered broker/dealer and member of FINRA/SIPC. All securities contemplated will be offered through GT Securities Inc.  Metro is not an affiliate of GT Securities Inc.

Whether you are Selling a Public or Private company, Buying a Company or Raising Capital you should always engage a FINRA licensed individual vs. a non-licensed individual to avoid the perils and liability associated with paying an unlicensed individual.  There have been laws enacted that can unwind a completed transaction and the party that paid an unlicensed individual could be liable for damages.

Are all Business Brokers FINRA licensed?  No, just because an individual or company portrays that they are business brokers and are operating under proper authority due to having a state Real Estate License still may not provide them with the required license to properly represent a Seller (Public or Private Entity) or a Buyer of a Business in a transaction and be in violation of both Federal and State Securities Laws.  This is due to the fact the transaction could be considered a security related transaction in the event of, but not limited to:  the sale of company that involves stock (public or private) of the company, financing of the transaction may include security related financing instruments (i.e. mezzanine financing, convertible debt securities, etc.) and the overall transaction structure maybe conducted as a Corporate Stock Sale.  This issue can become more complex when the transaction pertains to a Seller in one state and a Buyer in another state.  The Securities Exchange Commission(SEC) has prescribed rules that is it illegal to sell securities into a state without complying with that State’s sale of security laws.

Selling or Buying a Company most likely will be one of the biggest investments of your lifetime, don’t make the biggest mistake of your lifetime and use an individual or company to represent you in a transaction that is not FINRA licensed.

FINRA Registration Requirements 

An individual must be properly licensed Under the Securities Exchange Act of 1934 to mean “any person engaged in the business of effecting transactions in securities for the account of others.”  There also have been laws enacted specifically addressing this issue, which provides for (i) an express right of rescission to any investor who purchases a security from a person or entity that acted as a “broker-dealer” but was not registered; and (ii) the right of the purchaser to sue the unregistered seller for money damages.  (2) In 2008, the SEC adopted a new Form D (a private placement), which must include the identities of all brokers and/or finders engaged in the offering of securities of the issuer.   

The SEC has cautioned that persons who find investors for issuers, even in a “consultant” capacity, may need to register as a broker depending on a number of factors, including whether (1) the finder participates in the solicitation, negotiation or execution of the transaction, (2) compensation is related to the outcome or size of the transaction, (3) the finder is otherwise engaged in the business of effecting securities transactions and (4) the finder handles securities or funds of others. A “yes” answer to any of these factors indicates that registration may be required.