Tagged: finra

Crowdfunding Platform uFundingPortal Goes Dark. Site Pulled from FINRA Approved List

uFundingPortal, a Regulation CF crowdfunding platform that was, until recently, a regulated and FINRA approved platform has been shut down. Today, the site is gone and has been removed from the list of FINRA approved platforms indicative of some sort of transgression regulators could not tolerate…. Read More

FINRA Allegedly Warns Off Reg CF Portals on Use of Trusts for Escrow

FINRA is a non-governmental entity that acts as a financial regulator over a wide swath of the financial industry.  Their mission is to detect and prevent wrongdoing in the US financial markets. FINRA also has enforcement powers. Last year alone they rendered over 1500 disciplinary… Read More

Good Advice: How Fees Impact Investment Returns Over Time

The SEC is constantly churning out releases and statements and, at times, advice for investors. Earlier this week they revisited an important topic: fees and expenses ladled on by funds and firms can harm your long-term investment returns. Most investors focus on top line numbers… Read More

Newest Reg CF Crowdfunding Platform, Mr. Crowd, Has Roots in Hong Kong

The list of approved and regulated Regulation CF platforms is growing. The roster now stands at 15 FINRA regulated crowdfunding platforms.  The most recently approved platform, ‘Mr. Crowd’ has an interesting progeny as it is being launched by Allen Au and his Ksdaq, Inc. corporation…. Read More

There are Now 14 FINRA Approved Funding Portals as Created by Title III of the JOBS Act

Title III of the JOBS Act created a new securities exemption that allowed equity crowdfunding for non-accredited investors. This new exemption, also called Reg CF, may be viewed as another step in the capital ladder to complement Title II of the JOBS Act (accredited crowdfunding)… Read More

FINRA Targets Non Traded Business Development Companies

FINRA is investigating the utilization of Business Development Companies, commonly referred to as BDCs.  While BDCs may trade on an exchange they may also be non-tradeded entities. BDCs have been around for quite some time having been created in 1980. BDCs typically invest in smaller… Read More

Brief: TruCrowd Receives Title III Crowdfunding Approval From FINRA

On Tuesday, equity crowdfunding platform TruCrowd announced that it has received approval from the FINRA to become a funding portal for Title III offerings. Under the Title III rules, which went into effect on Monday, the general public may now invest in capital raising by start-up… Read More

FINRA Tells Investors to Consider the Risks Under Title III Crowdfunding

With Title III of the JOBS Act going into effect this upcoming Monday (May 16th), the Financial Industry Regulatory Authority (FINRA) has issued an alert to investors about the risks under the Reg CF law. Earlier this year, both the SEC and FINRA finalized the rules for funding portals… Read More

StartEngine is Ready For Regulation Crowdfunding: Announces Approval from FINRA & SEC

With Title III of the JOBS Act finally going into effect on May 16th, StartEngine has announced it has received approval from FINRA and the SEC to operate a Reg CF funding portal. Title III crowdfunding will join the other two variants of investment crowdfunding, Title… Read More

IOSCO Lists Crowdfunding, Cryptocurrencies on List of Investor Risks

The International Organization of Securities Commissions (IOSCO) has included crowdfunding, bitcoin / cryptocurrencies in their March report as part of their long list of investor risks and concerns regarding financial stability. IOSCO is the international body that brings together securities regulators from around the world…. Read More

Report: SEC Has Received 30 Applications for Title III Crowdfunding Portals

Title III crowdfunding will join the other two variants of investment crowdfunding, Title II and Title IV (Reg A+) this coming May to create a more vibrant capital ladder for companies seeking to raise capital using the internet. While no exemption is perfect, both accredited… Read More

Scottsdale Capital Advisors Challenges FINRA Authority to Regulate in Federal Court

Scottsdale Capital Advisors Corp is challenging the Financial Industry Regulatory Authority’s (FINRA) ability to act as a securities regulator in Maryland federal court by stating it does not truly have a Congressional mandate to wield such power. The lawsuit is in response to proceedings pertaining… Read More

Working To Change The Definition of Accredited Investor – A Tale of Two Schweikert Bills

  There has been a lot of chatter and debate lately on how, or even if, the current definition of “accredited investor” should be substantively changed. To date, however, there has only been one affirmative action taken to actually change the definition which I am… Read More

Crowdfunding Portals Prepare for Title III Retail Crowdfunding

Last week both the SEC and FINRA finalized the rules for funding portals to offer securities under Title III of the JOBS Act of 2012.  The journey to get to this place has been long and at times challenging as regulators and industry participants debated… Read More

FINRA Crowdfunding Portal Rules Posted (Document)

The Securities and Exchange Commission has approved the FINRA crowdfunding portal rules and related forms. These new rules apply to portals that seek to operate under Title III of the JOBS Act and are not affiliated with a Broker – Dealer.  They are effective as… Read More

FINRA Portal Rules for Equity Crowdfunding Under Title III of the JOBS Act

As expected, the funding portal rules operating under Title III of the JOBS Act have hit the pages of the Federal Register.  Platforms intent on leveraging the new exemption to issue securities of up to $1 million are able to start the process of registering… Read More

SEC Files Notice of Amendment & Accelerated Approval for Reg CF Funding Portal Rules (Document)

The Securities and Exchange Commission submitted a filing last Friday regarding FINRA’s regulatory role pertaining to investment crowdfunding portals operating under Title III of the JOBS Act.  According to the SEC, FINRA just responded (January 21st) to several comment letters and the Commission is now… Read More

Potential Pitfalls of Regulation CF – Part II: Practical Concerns for Funding Portals

As discussed in part one, the SEC’s final Regulation Crowdfunding rules require thorough analysis to not fall prey to potential traps. While I firmly believe that we can make crowdfunding work regardless of the roadblocks set forth, it does not mean that we can afford… Read More

OurCrowd Founder and CEO Jon Medved Shares his Vision on Crowdfunding, Startups, SPVs and Liberal Arts

  “I think that what OurCrowd and others have done in this space until now has been quite subversive and wonderful and democratic.” OurCrowd, which is run by serial entrepreneur and venture capitalist Jon Medved, has put at least $170 million to work in roughly… Read More

FINRA Crowdfunding Portal Rules

The Financial Industry Regulatory Authority (FINRA) published its proposed portal rules for crowdfunding platforms under Title III of the JOBS Act of 2012.  The guidelines from FINRA have been expected for some time and with the SEC ready to announce final rules for retail crowdfunding… Read More

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