News & Analysis as of September 18, 2024

Crowdfunding › Financial Industry Regulatory Authority (FINRA) › Securities and Exchange Commission (SEC)

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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 -

Finders and Unregistered Broker-Dealers

Venable LLP on 6/29/2023

The issue of when a person may be considered a “broker” or “dealer” and subject to registration as such under the federal securities laws, as distinguished from so-called finders (and therefore not subject to the panoply of...more

Agencies Issue Joint Proposal to Strengthen and Modernize CRA Regulations

Goodwin on 5/16/2022

Regulatory Developments - Agencies Issue Joint Proposal to Strengthen and Modernize CRA Regs - On May 5, the FDIC, the FRB and the OCC issued a joint Notice of Proposed Rulemaking (NPR) to “strengthen and modernize” the...more

FINRA Report Highlights New Topics and Emerging Risks for 2022

Troutman Pepper on 2/18/2022

On February 9, FINRA published its 2022 Report on FINRA’s Examination and Risk Management Program (2022 Report), an authoritative resource for member firms to evaluate and, where necessary, enhance their compliance programs...more

FINRA’S 2022 Report on Examination & Risk Monitoring Program

Burr & Forman on 2/10/2022

Over the last couple of decades, the securities self-regulatory organization FINRA (f/k/a NASD) informs its membership each year of what compliance risks are noted by its examination program. Those are risks firms should...more

SEC Focused on Enforcement in the Crowdfunding Space

Troutman Pepper on 10/18/2021

Following last year’s drastic increase in the annual limits permitted for crowdfunding campaigns, the Securities and Exchange Commission (SEC) has increased its focus on the regulation of crowdfunding, particularly for...more

Report on 2019 SEC Government-Business Forum on Small Business Capital Formation Released

Mayer Brown Free Writings + Perspectives on 12/9/2019

The Securities and Exchange Commission released the report from the August 2019 Government-Business Forum on Small Business Capital Formation. The Annual Forum provides an opportunity for market participants to meet and...more

Blog: JOBS Act 3.0?

Cooley LLP on 7/25/2018

Will there be a JOBS Act 3.0? The JOBS and Investor Confidence Act of 2018 just passed the House by a vote of 406 to 4, so, even though Senators may often be chary of jumping on the House bandwagon—remember the doomed...more

FAQ: What Businesses Need to Know About Investment Crowdfunding

Ward and Smith, P.A. on 11/9/2017

What is Crowdfunding? Crowdfunding is a marketing tool that businesses use to obtain capital from a large number of individuals, typically over the Internet....more

SEC Warns That ICOs and Other Internet Token Sales May Be Securities Offerings Subject to Federal Securities Laws

Dorsey & Whitney LLP on 7/27/2017

On Tuesday, July 25, as many practitioners probably expected, the SEC issued a warning that offers and sales of digital assets (virtual coins or tokens) by organizations using blockchain or distributed ledger technology...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

Orrick's Financial Industry Week In Review

Orrick, Herrington & Sutcliffe LLP on 3/3/2017

CFTC Indicates Willingness to Help Incubate Fintech - On February 21, 2017, J. Christopher Giancarlo, the acting chairman of the U.S. Commodity Futures Trading Commission ("CFTC"), has diverged from other U.S. federal...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

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

Investment Management Legal + Regulatory Update - April 2016

Morrison & Foerster LLP on 4/21/2016

Regulation - Department of Labor Issues Fiduciary Regulations Under ERISA - The Department of Labor (DOL) issued its long-anticipated final regulation (the “Regulation”) defining who is a fiduciary as a result of...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

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