Tagged: finra

Lock it up: SEC & FINRA Weigh in on Cybersecurity Issues

Padlock and chain

Early in 2014, the U.S. Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) announced its intention to conduct an examination of certain registered broker-dealers and investment advisers in order to assess the general vulnerability of the securities industry, as a whole, to cyber-attacks. On February 3rd the OCIE released the results of the… Read More

Perspective: Title III, Title IV and the Politics of Regulation

Democrats Republicans

  In my May 2014 article, “The Bell Tolls for Title III”, I laid out the reasons why it was highly unlikely that the SEC would issue Title III rules before the November elections and predicted that should the Senate flip to Republican control, we would see legislative changes to the JOBS Act. I have… Read More

FlashFunders Co-Founder Vincent Bradley Discusses His Newly Launched, No-Fee Equity Funding Platform

FlashFunders Bring Startups to Life

FlashFunders is the first no-cost equity funding platform open for small businesses and tech entrepreneurs.  “This is not the Silicon Vally model leveraging technology for business as usual,” avers FlashFunders. FlashFunders Co-Founder Vincent Bradley aims to take advantage of the recent changes in private equity funding by offering no costs for start-ups or investors: FlashFunders only makes money… Read More

SEC Study: Market Quality for Small Cap Equities

SEC logo

The Securities and Exchange Commission has published a report on markets for small capitalization equities as part of the requirement of the JOBS Act to study decimalization and trading of small cap companies.  Questions of liquidity and market efficacy have been ruminating at the SEC and market participant for years. In 2001 the SEC ordered… Read More

Release Title III: Securities Based Crowdfunding Rules – The New Investing Model

This Train is Late

Some Issues in Title III Crowdfunding Regulations Require Modification. Recently, there has been a renewed call for action on Title III (Regulation Crowdfunding) to go-live. And there are some proponents in the industry that just want the rules to go live ‘as-is’. However, the Crowdfunding Intermediary Regulatory Advocates (CFIRA), the first advocacy and lobbying trade… Read More

Investment Crowdfunding: The Most Significant Innovation for Entrepreneurship in a Generation (Deck)

Mary Jo White SEC Chair

Kickercon, a crowdfunding conference took place this past week in Texas.  At one of the sessions Ron Miller,  CEO of StartEngine and hopeful  crowdfuning portal operator, took to the podium to pound the table on Title III retail crowdfunding. In a presentation titled:  Investment Crowdfunding – The Most Significant Innovation for Entrepreneurship in a Generation,… Read More

The Bell Tolls for Title III Crowdfunding

Mary Jo White Is it Over yet

After more than two years of waiting, the news from Capitol Hill is not good.  The JOBS Act was a political compromise passed by Congress in 2012 due to several layered political agendas. Unfortunately, the provisions of the JOBS act, as enacted in Title III, are so unworkable that we now must turn our attention… Read More

JOBS Act 2.0: Congressman McHenry’s Cure for the “Six Deadly Sins” of Crowdfunding Regulation

Patrick McHenry Fixing the JOBS Act

For those of you who were too busy to notice, U.S. Congressman Patrick McHenry introduced three draft bills into the House Financial Services Committee last week.  One of them, if it were to become law, would open up the U.S. equity crowdfunding world in ways which only a true visionary could imagine.  Though its passage… Read More

FINRA Makes Crowdfunding A Priority For 2014

As they do every year, FINRA has released a letter outlining their priorities for the forthcoming year. Regulatory changes prompted by the passage and implementation of the JOBS Act are featured heavily in the letter as risks that mandate diligence on behalf of FINRA. Issues raised include… General Solicitation General solicitation, which before the amendments… Read More

Steps To Take Now To Prepare For A JOBS Act Crowdfunding Campaign


The SEC’s 90-day comment period for the proposed JOBS Act equity crowdfunding rules ends in late January 2014. There is a chance that we could see the first JOBS Act crowdfunding campaigns as early as April, although I am not holding my breath on that happening. But, assuming the stars all align and everything somehow… Read More

JOBS Act Title III Rules: Moving Closer to Equity Crowdfunding

jobs act

Under the proposed rules, Title III of the Jumpstart Our Business Startups Act (JOBS Act) will create a new investor class by allowing non-accredited investors to participate in crowdfunding. These rules will lead to a democratized investment landscape profitable to entrepreneurs, inventors, artists, writers, and everyday Americans. Since everyone else can crowdfund anything, startups who… Read More

Prodigy Network Bets Big On Crowdfunding Commercial Real Estate

BD Bacata Over $170 Million Crowdfunded Prodigy Network

In applying a loose definition of the term “crowdfunding,” Rodrigo Nino stands as the undisputed king of the emerging fundraising methodology. He and his team at Prodigy Network crowdfunded a building in Colombia to the tune of over $175 million from investors both in Colombia and the United States. If you asked me what the… Read More

On The Proposed SEC Regulations & Crowdfunding: Let’s Get It Right, Chairman White


(Editors Note: The content below was corrected to reflect text included in the original article that was not clearly attributed to Dara Albright.) There was an air of euphoria in the crowdfunding community on October 23 when the U.S. Securities and Exchange Commission finally issued its proposed crowdfunding rules – a necessary step to implement… Read More

Senate Hearing On JOBS Act: Neiss, Fleming Spar Over Cost Of Capital


Yesterday the United States Senate Committee on Banking, Housing & Urban Affairs held a hearing entitled “The JOBS Act At A Year And A Half: Assessing Progress And Unmet Opportunities.” It was set to be a particularly interesting hearing because of the panel, which included two people who would certainly have opposing viewpoints on issues… Read More

FINRA Issues Proposed Rules For Crowdfunding Portals

In what is becoming the busiest day in crowdfunding news since the JOBS Act has passed, FINRA has released proposed rules governing funding portal registration. Public comments will be accepted until February 3, 2014. More on this to come… FINRA Release on Proposed Rules Finra Funding Portal Proposed Rules

FINRA to Request Comments on Rules for Crowdfunding

As previously reported, FINRA held a board of Governors meeting today and addressed several important issues.  One of their agenda items was Title III of the Jobs Act which covers crowdfunding. In posting on the FINRA site signed by CEO and Chairman Richard Ketchum, FINRA was authorized by the board to publish a regulatory notice… Read More

FINRA To Discuss Crowdfunding Portal Rules on July 11th

The FINRA Board of Governors has scheduled a meeting on July 11th – one day after the SEC meeting to review portions of the jobs act, specifically regulation pertaining to Regulation D or private placements. The FINRA board will review a proposal to solicit comment via Regulatory Notice on proposed rules and related forms governing… Read More

Crowdfunding Sites Scoot Around a Regulatory Traffic Jam


These days, you’re unlikely to encounter a story about equity-based crowdfunding that doesn’t come with some form of the following disclaimer: More than a year after President Obama signed the JOBS Act into law, the Securities and Exchange Commission has yet to formalize rules that would allow small companies to sell shares over crowdfunding platforms…. Read More

BancBox Releases Industry’s First Escrow API for Crowdfund Investing


BancBox, a leading payment services provider, announces today the public launch of BancBox Crowd, the first independent escrow service for equity, debt and revenue share crowdfunding portals. Additionally, the company is announcing partnerships with leading crowdfund investing services 99Funding, SoMoLend, and Localstake. “The services provided by BancBox crowd have been instrumental in developing a seamless investment… Read More

Crowdfunding Industry Leaders Take To Washington To Speed Adoption

SEC Small Business Capital Formation 2012

After today’s press conference at the National Press Club one thing is clear. Crowdfunding industry stakeholders want movement toward implementation of the JOBS Act and they want it soon. SoMoLend CEO Candace Klein spoke to a concern that tumult in the SEC’s leadership could delay crowdfunding’s implementation past Q4 2013. Vincent Molinari of GATE Technologies… Read More