Tagged: legal

Innovate Finance, EY & Hogan Lovells Publish Report on Blockchain Opportunity


Innovate Finance, along with partners EY & Hogan Lovells, has published a report on Blockchain adoption.  Entitled Blockchain, DLT and the Capital Markets Journey: Navigating the Legal and Regulatory Landscape, the publication addresses distributed ledger technology (DLT) and the current regulatory environment.  The report also provides… Read More

State of the States: An Intrastate Crowdfunding Update


While I have kept both my statutory summary pages and comparative summaries relatively up to date, it has been quite a while since I have done an editorial update on Intrastate Crowdfunding. With the increased number of active Intrastate regulations, as well as the growing… Read More

Is the SAFE Not So Safe for Investment Crowdfunding?


Earlier this year, on May 16, 2016, the final portion of the JOBS Act became actionable. The much anticipated Title III provisions and Regulation Crowdfunding (Reg CF) went into effect, marking the official beginning of retail crowdfunding in the United States. While the industry is… Read More

Regulation A+ Offering: Hype or Reality?


Jobs creation and wages are in the spotlight again by voter demand this presidential election year and receiving attention from both Republican and Democratic parties. This begs the question whether an improved version of Regulation A under the JOBs Act of 2012 offers a practical… Read More

National Crowdfunding Association of Canada Criticizes Integrated Crowdfunding Exemption in Letter to Alberta Securities Commission

Canada Flag

The National Crowdfunding Association of Canada (NCFA), has criticized Canada’s regulatory approach to crowdfunding in a public letter sent to the Alberta Securities Commission and Superintendent of Securities, Nunavut.  While the letter is addressed to the two entities it can be viewed as a proxy… Read More

Hacking the Law (Crowdfunding Edition): Concurrent Offerings Part 1


First off, don’t panic. We’re not talking about hacking into computer networks or anything. Legal hacking, or hacking the law, doesn’t involve anything surreptitious. From an organization standpoint, Legal Hackers is an organization originating from Brooklyn Law School and now a global movement with over… Read More

Why “Special Purpose Entities” Are So Special 


As securities attorneys, we’ve been getting a fair amount of questions lately on special purposes entities (SPEs), also known as special purpose vehicles (SPVs). What are they? What do they do? Should I choose an SPE over an LLC? (That last one is my favorite)…. Read More

To Disclose or Not to Disclose, That is the Question

Hamlet Actors

In connection with a private offering of securities the issuer will provide potential investors with some form of disclosure document. Regardless of what type of offering it is (e.g. Rule 506, Title III, Intrastate, or other private offering), the intent of this disclosure document is… Read More

Pile On: Yirendai Now Has Eight Lawsuits Against Them

China Punishiment Image

At the most recent count, China-based peer to peer lender Yirendai (NYSE:YRD) has at least eight class-action lawsuits filed against the company following the enactment of new regulations directed towards the booming online lending industry in China. The firms that have made public proclamations are as… Read More

iFunding Settles Lawsuit, Says Most Recent Month Best Ever

William Skelley

Real estate crowdfunding platform iFunding (Innovational Funding LLC) has settled a lingering lawsuit regarding a shareholder claim against the young  company. According to information provided by iFunding, the lawsuit brought against the company by Michael J. Turner has been settled for cash.  The cash settlement… Read More

Will CFPB Move to Limit Arbitration Undermine Alternative Finance?

Broken Benjamin Money

The Consumer Financial Protection Bureau (CFPB)recently proposed banning arbitration regarding certain  consumer financial agreements and to allow the legal process to take hold in the case of a dispute. The CFPB posted the proposal this past May, outlined as follows: First, the proposed rule would… Read More

The Top Regulatory Mistakes Being Made by Issuers & Crowdfunding Platforms

Train Wreck Demise Collapse Disaster

General solicitation is growing for securities offerings conducted under Rule 506(c) and Reg A+ Tier II in the US.  A more limited form of general solicitation is also available to issuers participating in offerings pursuant to Title III of the JOBS Act (Crowdfunding).  Issuers may… Read More

Syndication is the What, Crowdfunding is the How

What and How Explanation Question Money

Syndication and crowdfunding are terms that have been used interchangeably within the last decade, and their concepts and meaning have become increasingly blurred. However, whereas syndication focuses on funding relationships and structure between the funder and funded, crowdfunding is a method of finding investors (or… Read More

The Fix Crowdfunding Act. What it Fixes & What it Does Not

Majesty of Law Rayburn House Office Building Washington DC

In early June, the U.S. House of Representatives, Financial Services Committee, approved the “Fix Crowdfunding Act” bill (HR 4855). Maybe it’s the title of the bill that is misleading, but since then I have seen multiple articles which incorrectly describe what this legislation, if fully… Read More

Gillian Roche-Saunders Shares Insight into UK FCA Crowdfunding Regulatory Review

Gillian Roche-Saunders Quote

Gillian Roche-Saunders, is a partner at the law firm of Bates, Wells & Braithwaite in London.  She is a leading regulatory consultant in the Fintech sector having been engaged in alternative finance for the past five years – before the FCA jumped in to officially… Read More

iDisclose Partners with Republic

Georgia Quinn 2016

Just launched crowdfunding platform Republic has formed a partnership with Fintech firm iDisclose to provide legal disclosure services for Form C, as mandated under Reg CF.  iDisclose is a disruptive RegTech provider that empowers platforms, entrepreneurs, and yes other law firms, to more efficiently produce… Read More

FCA Prioritises Fintech Innovation & Consumer Protection in Crowdfunding Review

FCA Regulatory Review UK

The Financial Conduct Authority (FCA) will look to ensure that consumers are sufficiently protected against the risks inherent in crowdfunding while supporting innovation in the growing market in a forthcoming review of its regulation of the industry. Crowdfunding rules were introduced by the FCA in… Read More

Smoked: Reg CF Doesn’t Work for Marijuana Industry Entrepreneurs

Marijuana Cannabis Leaf

The budding Marijuana industry has attracted a legion of “ganjapreneurs” seeking the chance to cash in on the US movement to legalize and legitimize Cannabis. ArcView Group, a “hub for investment, data and progress” estimates the industry will drive around $7 billion in revenue during 2016…. Read More

Developing: Supreme Court will not Review Second Circuit Decision on Madden vs. Midland

Supreme Court Law Legal

The ongoing saga of Madden vs. Midland just took another twist as the US Supreme Court has decided not to review the Second Circuit court decision on usury laws.  This is according to a report in Law360 today.  The decision was described as a “blow… Read More