The Securities and Exchange Commission (SEC) is requesting public comments on an existing rule, Rule 15a-6, which provides certain foreign broker-dealers with conditional exemptions from registering as a broker-dealer in the U.S. if they follow specific guidelines. This rule allows foreign broker-dealers to engage with U.S. institutional investors through registered U.S. broker-dealers. The SEC estimates that complying with this rule takes about 6,000 hours of work annually across approximately 2,000 broker-dealers, costing $1,000,000 in total. Public comments on the necessity and impact of this rule are welcomed until February 18, 2025.
Simple Explanation
The SEC wants to hear what people think about a rule that lets foreign businesses talk to U.S. investors without having to register in the U.S., as long as they follow certain rules. They say this takes a lot of work and money each year, and they want opinions on how useful the rule is.