Broker Disclosure Requirement
A rule requiring a financing broker to disclose specific information to a business, such as compensation, fees, or the identity of the actual funding source, as part of arranging a deal.
The specific information a broker must disclose, and when, depends on applicable state law and the type of financing being arranged, but the general purpose is to give a business clearer visibility into who’s actually offering the financing and how the broker is compensated on the deal.
Because requirements vary by state and are subject to change, this describes the general concept rather than a specific state’s current rules; brokers and businesses should confirm current disclosure obligations directly.
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