SEC Permits Web Service for Streaming Road Shows
The SEC’s Division of Trading and Markets has issued a No-Action Letter that will allow a company independent of any underwriter to transmit roadshow presentations for private offerings over the Internet without registering as a broker-dealer. The company developed a web-based tool for creating and streaming road shows to qualified institutional buyers. The client underwriters would be responsible for ensuring that the users were qualified institutional buyers and would issue password credentials. The company would charge only a flat fee not contingent on success of the offering. It would also not endorse or recommend any offering or participate in the offerings.
OUR TAKE: This third party service offers smaller issuers an outlet for delivering road show content to potential investors, taking the “road” out of “road show.”