The Regional Center is an entity, and, unless it also controls the new commercial enterprise, is not itself selling securities. Broker-dealer registration is very important, however, for the selling of securities.
Does an EB-5 regional center have to be a registered investment adviser or broker dealer since the regional center is selling securities? What are the SEC registration requirements for regional centers?
Generally most regional center commercial enterprises are not required to register their securities offers and sales with the SEC pursuant to the exemptions in "Regulation D" (the private placement exemption). However, entities exempted under Regulation D must file "Form D" with the SEC. Likewise, some regional center commercial enterprises may be exempt under "Regulation S." But this regulation may not apply if the investor signs the subscription agreement while in the United States. It is important to discuss this issue with experienced securities attorneys. The law will change in regard to obtaining broker dealer licenses in the near future.
John J DowneyAnswered on
No, as of now you do not have to be a registered broker, but you should seek the advice of one before you send out an offering. SEC as of now has no requirements regarding regional centers.