News & Analysis as of September 22, 2024

Crowdfunding › Financial Industry Regulatory Authority (FINRA) › Funding Portal

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Crowdfunding is a method for raising capital whereby many individuals network and pool their funds, usually via the internet or social media. Crowdfunding methods are used in a variety of circumstances including,... more +

Crowdfunding is a method for raising capital whereby many individuals network and pool their funds, usually via the internet or social media. Crowdfunding methods are used in a variety of circumstances including, but not limited to, supporting charitable organizations, disaster relief, product development, artistic projects, and financing start-up companies. The passage of the JOBS Act of 2012 sought to broaden the use of crowdfunding in developing private capital for start-up companies by relaxing certain SEC investor registration requirements. less -

Four Lessons from Two FINRA Enforcement Actions against Crowdfunding Portals

Goodwin on 5/12/2022

On May 4, 2022, FINRA announced that it had fined two FINRA-registered funding portals a combined $1.75 million for failing to comply with securities laws and rules designed to protect crowdfunding investors. Funding portals...more

SEC Releases White Paper on Crowdfunding

Morrison & Foerster LLP - JOBS Act on 3/14/2017

On February 28, 2017, the SEC released a white paper analyzing crowdfunded offerings during the first six months following the effective date of Regulation Crowdfunding (May 16, 2016). The white paper noted that crowdfunding...more

U.S. Securities-Based Crowdfunding

Morrison & Foerster LLP - JOBS Act on 3/1/2017

Acting Chair Piwowar made remarks at the the Dialogue on Crowdfunding hosted by the Securities and Exchange Commission and the Salomon Center for the Study of Financial Institutions at New York University. In his remarks,...more

FINRA Action Against Crowdfunding Platform

Morrison & Foerster LLP - JOBS Act on 12/19/2016

On November 2, 2016, FINRA terminated the FINRA registration for UFP, LLC (“UFP”), making UFP the first crowdfunding portal to be expelled from FINRA. UFP ran an online funding portal, uFundingPortal.com, where it acted as...more

Secondary Trading in Regulation A+ Securities; $4.4 Million Committed by Investors Under Regulation Crowdfunding

Stinson - Corporate & Securities Law Blog on 7/20/2016

In connection with the SEC meeting of the Advisory Committee on Small and Emerging Companies, the SEC posted a presentation which deals in part on secondary trading of Regulation A+ securities. Among other things, it includes...more

Financial Services Weekly News - May 2016 #3

Goodwin on 5/19/2016

Regulatory Developments - SEC Publishes Small Entity Compliance Guide for Crowdfunding - On May 13, the Securities and Exchange Commission (SEC) published a small entity compliance guide for companies wishing to...more

May 16th: Title III Crowdfunding Effective Date

Morrison & Foerster LLP - JOBS Act on 5/17/2016

In time for the effective date of Regulation Crowdfunding, FINRA has issued an investor alert and a press release....more

Crowdfunding Begins With 17 Issuers

Stinson - Corporate & Securities Law Blog on 5/17/2016

Monday May 16, 2016 was the first day JOBS Act Title III crowdfunding could be used. Below are links to some portals and other information....more

Crowdfunding Begins on May 16, 2016

Morgan Lewis on 5/11/2016

Funding portal registration is now available through FINRA. This LawFlash discusses funding portals, which are the intermediaries through which crowdfunding will occur, specifically regarding the registration process...more

Shopping for Startups – SEC Offers Additional Guidance for Intermediary Crowdfunding Portals

BCLP on 4/15/2016

I previously wrote about the new rules of the Securities and Exchange Commission (“SEC”) allowing startups to utilize crowdfunding platforms to sell an equity stake in their business to investors in exchange for working...more

Regulation Crowdfunding – Funding Portals and Other Crowdfunding Intermediaries

Smith Anderson on 2/11/2016

Title III of the Jumpstart Our Business Startups Act (JOBS Act) created a new securities registration exemption for crowdfunding offerings by adding Section 4(a)(6) to the Securities Act of 1933 (the Securities Act). In late...more

SEC Approves FINRA Portal Rules, Forms for Crowdfunding Under Title III

Ballard Spahr LLP on 2/10/2016

The U.S. Securities and Exchange Commission (SEC) approved the Financial Industry Regulatory Authority, Inc.'s (FINRA) crowdfunding Portal Rules for companies that want to operate an intermediary “funding portal” pursuant to...more

SEC Approves FINRA’s Funding Portal Rules

Morrison & Foerster LLP - JOBS Act on 2/1/2016

The SEC approved FINRA’s Funding Portal rules for entities that intend to function as funding portals in crowdfunded offerings made pursuant to Regulation Crowdfunding. We had previously posted a link to the rule text. On...more

FINRA Amends Proposed Funding Portal Rules

Morrison & Foerster LLP - JOBS Act on 1/26/2016

On January 21st, FINRA filed an amendment to its proposed rule changes relating to the registration, supervision and oversight of crowdfunding funding portals. The Securities and Exchange Commission published a notice and...more

Joining the Crowd: SEC Adopts Final Crowdfunding Regulations - Part III - Intermediaries

K&L Gates LLP on 1/26/2016

On October 30, the U.S. Securities and Exchange Commission (“SEC”) adopted final rules in the form of Regulation Crowdfunding to implement the securities-based crowdfunding exemption in Section 4(a)(6) of the Securities Act...more

What you need to know about the New SEC Rules on Crowdfunding

Burns & Levinson LLP on 12/15/2015

On Oct. 30, 2015, the Securities and Exchange Commission (“SEC”) adopted new rules that will enable some private companies to use the Internet for crowdfunding campaigns seeking up to $1 million per 12-month period. ...more

Title III of JOBS Act Brings Non-Accredited Investors to Crowdfunding Table

Holland & Knight LLP on 11/20/2015

The U.S. Securities and Exchange Commission (SEC) recently approved Title III of the JOBS Act, a significant development because the new regulations allow non-accredited investors – those making less than $200,000 a year in...more

Following the Wisdom of the Crowd? A Look at the SEC’s Final Crowdfunding Rules

Morrison & Foerster LLP on 11/2/2015

In this alert, we provide a detailed overview of the final rules, Regulation Crowdfunding, which will be applicable to crowdfunding offerings conducted in reliance on Section 4(a)(6) of the Securities Act of 1933 as amended...more

Regulation Crowdfunding

Morrison & Foerster LLP - JOBS Act on 10/30/2015

On October 30, 2015, the SEC voted to adopt final rules permitting crowdfunding. Regulation Crowdfunding allows issuers to engage in securities-based crowdfunding through the internet pursuant to Section 4(a)(6) of the...more

Sign of Things to Come?

Broker-Dealer Compliance + Regulation on 10/27/2015

FINRA recently filed a proposed rule change with the Securities and Exchange Commission in order to adopt the final rules relating to Title III crowdfunding “funding portals.” This may signal that indeed the final...more

Financial Services Weekly News - October 2015 #2

Goodwin on 10/15/2015

Regulatory Developments: FINRA Proposes Rules for Funding Portals - On Oct. 9 FINRA filed with the SEC a proposed rule change to adopt Funding Portal Rules 100 (general standards), 110 (funding portal application),...more

No Portal Necessary

Morrison & Foerster LLP - JOBS Act on 9/23/2015

With increasing frequency, we are asked whether an issuer that is considering a Regulation A offering is required to engage or use the services of a funding portal. In short, NO. A funding portal is a new type of financial...more

Standing out from the Crowd: A Closer Look at the SEC’s and FINRA’s Proposed Crowdfunding Rules

Morrison & Foerster LLP - JOBS Act on 11/18/2013

In this alert, we provide a detailed overview of the proposed regulatory framework that will be applicable to crowdfunding offerings conducted pursuant to Title III of the JOBS Act in reliance on Section 4(a)(6) of the...more

SEC and FINRA Rule Proposals Take Next Steps Towards Fulfilling JOBS Act Crowdfunding Mandate

Goodwin on 11/1/2013

The SEC issued a rule proposal designed to fulfill a mandate under the 2012 Jumpstart Our Business Startups (“JOBS”) Act to adopt rules that implement changes to the federal securities laws under the JOBS Act that permit...more

Crowdfunding 101: What Is It? And Should I Be Excited About it? PART 1

Chambliss, Bahner & Stophel, P.C. on 7/29/2013

Ever since the passage of the JOBS Act (the Jumpstart Our Business Startups Act), there’s been a lot of hype about crowdfunding. A lot of startups have built their entire business model on the assumed ability to use...more

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