Hearing Financial Services Committee ("HFSC") H.R. 609

WASHINGTON D.C.  – September 11, 2019 – BIEF Chairperson John Zayac comments on today’s meeting.  Based on my observations from today’s HFSC hearing on various bills, including our own HR 609, I believe the following points are worth noting:

  • The overwhelming majority of the testimony and Q&A did NOT concern HR 609, but rather focused on appropriate strategies and safeguards for small, private investors to invest in private capital market opportunities.
  • NASAA’s printed testimony DID have a strong, favorable mention in support of HR 609 (reprinted immediately below); but due to time constraints NASAA’s oral testimony made no mention of HR 609.
  • Written testimony from Attorney Douglas Ellenoff, founding partner with the prominent New York securities law firm of Ellenoff, Grossman & Schole, does NOT include any mention of HR 609, but he did come out in strong support of HR 609 in his oral testimony, and in responding to questions from Congressman Huizenga.
  • Strong support for HR 609 DID come from NASAA’s immediate past president, Mike Pieciak, and Attorney Douglas Ellenoff, in their responses to questions directed to them by Congressman Bill Huizenga, the bill’s original sponsor.
  • HFSC Markup is later this month, then onto the floor of the House for final passage by the full House, then on to the Senate.

Excerpt from NASAA’s written testimony before the HFSC Hearing on 9/11/19.

4. The Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act (H.R. 609)

The Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act would establish an exemption from registration requirements under federal securities laws for persons serving as brokers in certain merger and acquisition deals (“M&A brokers”). The exemption envisioned by the legislation is broadly consistent with a Model Exemption that NASAA approved in 2016, and with the de-facto federal policy that has existed since the issuance of a “no-action” letter by the Staff of the Commission on Feb. 4, 2014.44

State securities regulators share Congress’s interest in establishing a more streamlined regulatory framework for persons serving as M&A brokers in deals that involve the transfer of securities, subject to certain conditions.45 Moreover, we believe H.R. 609 appropriately balances the legitimate interests of all stakeholders, while maintaining significant safeguards for investors and small business owners.46

Further, while the framework established by H.R. 609 has been largely in place since 2014, federal legislation remains necessary due the limited legal effect of SEC staff “no-action” letters.
NASAA supports H.R. 609, and we look forward to working with Ranking Member Huizenga and other members of the Subcommittee to facilitate its consideration and passage.

About BIEF
BIEF is about a commitment to growth of the profession, promotion of the highest standards, and prosperity for its professionals. Furthermore, creating awareness and knowledge among sellers, buyers, and others engaged in the process of change in ownership of privately held businesses.  More information is available at www.biefoundation.net


Media Inquiries:
Todd Cushing, BIEF Director of Marketing (847)-566-0500 X 251, [email protected]

Related Content

man reading summer 2025 issue of ibba insights IBBA Magazine

IBBAinsights: Summer 2025

IN THIS ISSUE: “A Record-Breaking Spring and a Promising Road Ahead” Letter from the 2025 IBBA Chair. Plus, Insights on Utilizing AI, Fighting Predatory Commercial Landlord Practices, Bridging the Gap, and More!

ibba member award Press Releases

IBBA Honors Top Individual Business Brokers at 2025 Annual Conference

Independence, OH – May 20, 2025 – The International Business Brokers Association (IBBA), the world’s largest professional trade association for Business Brokers, proudly announced the recipients of its top individual performance awards during the 2025 Annual Conference held in Orlando, Florida. “This year’s submitted deals represented a cumulative transaction value exceeding $2 billion—an extraordinary achievement,” […]

stairs with red carpet Press Releases

2025 Hall of Fame Inductees Announced

Independence, OH – May 7, 2025 – The International Business Brokers Association® (IBBA) is pleased to announce the 2025 inductees to the IBBA Hall of Fame: Cress V. Diglio | Lifetime Master CBI, M&AMI, Fellow of the IBBA Jeff Snell | Lifetime Master CBI, M&AMI, CM&AP, Fellow of the IBBA Scott Bushkie | CBI, M&AMI, CM&AP, […]

Newsletter Sign UpGet the latest insights on buying and selling small businesses direct to your inbox.

  • This field is for validation purposes and should be left unchanged.