Posts Tagged ‘ broker dealer ’

Unregistered broker-dealer services can be illegal…and costly.

By Tim Boykin Corporate Counsel at WealthForge, Crowdfund Beat Guest Contributor, Last month, in our blog post “Unregistered? You might be breaking the law… and the SEC is watching.,” we discussed the importance of the registration requirement of Section 15(a)(1) of the ’34 Act. We suggested that Section 15(a)(1) requires registration as a broker-dealer when a person effects or induces the purchase or sale of securities. Recent SEC action suggests that the SEC is construing the registration requirement broadly and is bringing related enforcement actions. The previous post discussed a specific SEC enforcement action involving an unregistered online platform. This post dives a bit deeper into the…

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FINRA’s Latest Proposed Funding Portal Rules and Fees “charts”

FINRA’s Latest Proposed Funding Portal Rules and Fees “charts”

By Lauren Leibowitz, CrowdFundBeat Guest Contributor, Principal at 1st BridgeHouse Securities, LLC, On October 9, 2015, 2 years after FINRA first published its proposed Funding Portals rules , FINRA published the amended proposed Funding Portal Rules to the Securities and Exchange Commission (SEC). The following are FINRA’s proposed rule submissions:         1. SR-FINRA-2015-040 a. Adopt Funding Portal Rules 100,110,200, 300, 800,900 and 1200 and related forms. b. Adopt FINRA rule 4518: Notification to FINRA in Connection with the JOBS Act. 2. SR-FINRA-2015-041: Adopt Section 15 of Schedule A to the FINRA By-Laws governing fees for funding portals that are FINRA Members. In April 2012, when…

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Raising Money online with a Participating Broker-Dealer?

Raising Money online with a Participating Broker-Dealer?

By Scott Andersen, CrowdfundBeat Guest Contributor, Principal at finLawyer.com FinLaw:  Raising Money online with a Participating Broker-Dealer? Welcome to the World of FINRA Regulation In my last article regarding Regulation A+ filing requirements, I discussed how when raising funds for a Reg A offering you are required not only to make a Form 1-A filing with the SEC, but also one with FINRA pursuant to FINRA Rule 5110. Rule 5110, known as the Corporate Financing Rule, enables FINRA to review and evaluate the fairness of underwriting terms and arrangements.  However, this is not the only FINRA rule that those seeking to publicly raise funds over the internet need to…

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SEC Sanctions Finder’s Fees by non-Broker-Dealer

SEC Sanctions Finder’s Fees by non-Broker-Dealer

By Jonathan Wilson CrowdFundBeat , Sr. contributing guest editor, partner in the corporate law department of Taylor English  LLP In a consent judgment announced recently the SEC re-emphasized its position that parties who are not licensed as broker-dealers are prohibited by securities laws from accepting so-called finder’s fees for connecting investors with securities issuers. In its consent judgment in In re IREECO, LLC, the SEC described IRRECO, LLC and certain named affiliates who ran a business in which they assisted prospective investors in EB-5 transactions with regional centers who were seeking investors for EB-5 project financings.  The EB-5 program is one that allows non-U.S. citizens to make an investment of at…

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The Many Definitions of “Crowdfunding”

By Fred Bryant, President, WealthForge It was 2010 and I had just received a question from a regulatory body: What is crowdfunding? While I have since answered this question dozens of times, crowdfunding as a term has been used by a variety of groups who have defined it in different ways, creating confusion about what exactly it is. To be clear, there are, in fact, many different flavors of crowdfunding. The three most common are donation-based, presale of a product, and securities or “equity” crowdfunding. All three have one thing in common: some sort of monetary exchange where one entity looks to source capital directly from…

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HEADLINE NEWS

LivemintFinding the right balance on crowdfundingLivemintSecurities market regulator Sebi (Securities and Exchange Board of India) has been trying to get a handle on digital platform-based crowdfunding since at least 2014, when it issued a cautiously positive consultation paper. It fl [...]

U.S. News & World ReportNo Cash for Hate, Say Mainstream Crowdfunding FirmsU.S. News & World ReportThe block on mainstream crowdfunding is just the latest blow to far-right activists operating online. In the last 24 hours, neo-Nazi website the Daily Stormer had its domain regi [...]

FortuneUncensored Social Network Gab Raises $1 Million in Crowdfunding CampaignFortuneA crowdfunding campaign for Gab, a Twitter-like social network that touts its commitment to freedom of speech, surpassed $1 million yesterday. The company claims it is politically neutral and committ [...]

Baltimore SunHarford still opposes crowdfunding sites for school donationsBaltimore SunRaising money through online crowdfunding sites is an ideal way for teachers to find the funds to purchase classroom materials and should be restored, the head of the Harford County teachers' u [...]

Crain's Cleveland Business'Smaller' gifts can go long way for Clinic's crowdfunding platformCrain's Cleveland BusinessFor an institution accustomed to securing multimillion-dollar donations, Cleveland Clinic's latest fundraising effort has some relatively [...]

The Northern Daily LeaderThe perks and pitfalls of crowdfundingThe Northern Daily LeaderWith a few clicks, would-be entrepreneurs, artists and charities can launch a project and start crowdfunding. All they need to do is nominate a dollar goal to raise within a certain time, and list [...]

League: Warriors legend Monty Betham drops crowdfunding bidNew Zealand HeraldFormer Warriors Monty Betham has pulled the pin on his quest to launch a crowdfunding campaign to buy the Warriors. With Warriors owner Eric Watson locked in negotiations to sell, Betham made a plea to league [...]

ForbesWhat Works In Equity Crowdfunding -- Insights From ResearchForbesAs we have recently celebrated the fourth anniversary of the signing of the JOBS Act into law, it is a good time to take stock of the effect that the legislature had on equity crowdfunding in the United States. It [...]

GeekZing Smart Light Passes Crowdfunding Goal With Flying Colors ...GeekAt age 31, I still prefer to keep a light on in the hallway, illuminating my way to the bathroom in the middle of the night. (God forbid I step on the creeping cat—or ...and more » [...]

Censorship in Crowdfunding Services and How Bitcoin Could HelpInside BitcoinsThis once again highlighted the need for crowdfunding and community support for independent projects to remain afloat, but this time it was more serious. With YouTube throttling advertising revenue to creator [...]

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