Tagged: regulations

FCA Annual Report: “Breaking down those barriers that have prevented firms coming into sectors, like banking, is an essential part of our role”

FCA Satisfcation

The Financial Conduct Authority (FCA), has been tasked with a mission to change and adapt to present day financial market realities.  Charged with the very important role of investor protection, and market efficiency, the FCA also maintains a mission to encourage competition.  It is this… Read More

Malaysia is First ASEAN Country with Crowdfunding Laws

Malaysia Coin Ringit

Malaysia has been at the forefront of countries in Asia advocating on behalf of capital access and innovative finance.  Largely championed by the Securities Commission, Malaysia now becomes the first country in the Asean region to have a defined regulatory environment to facilitate investment crowdfunding…. Read More

SEC Issues Cease & Desist Order To “EB-5” Investment Companies For Acting As Unregistered Broker-Dealers: This Matters to the Crowdfunding Industry

SEC Enforcemnt

  Last week the U.S. Securities and Exchange Commission (SEC) issued  a Cease and Desist Order (the “Order” embedded below) against two related companies for acting as unregistered broker-dealers in connection with the sale of securities under the “EB-5” Investor Program (also sometimes referred to… Read More

SEC Staff Provides Early Guidance on Use of Regulation A+

SEC Regulation A+

  On June 23, 2015, the Staff of the Securities and Exchange Commission provided some public guidance on certain issues arising under the new Regulation A+ Final Rules. In a new section of the SEC’s Compliance and Disclosure and Interpretations (C&DI’s),  a Q and A… Read More

OTC Markets Targets Reg A+ Issuers: Creates “On-Ramp” for Companies to Trade Shares


OTC Markets has published proposed new rules and standards for companies seeking to use newly adopted “Regulation A+,” or Title IV of the JOBS Act.  The objective is to have companies using this new exemption  to list their securities on OTCQX Best or OTCQB Venture… Read More

Will Reg A+ Issuers Be Required to Undergo Rigorous FINRA Review?

Bumpy Road Danger

In a little over a week Title IV of the JOBS Act, commonly called Reg A+, will become actionable.  We are already hearing chatter about companies planning on using the new exemption. Whenever a new chapter is written in the Securities Law Book there is… Read More

FINRA Launches Online BrokerCheck Research Tool, But Does It Work?

BrokerCheck Promos

Early last week the Financial Industry Regulatory Authority (FINRA) rolled out a multi-million dollar ad campaign promoting its online research tool called “BrokerCheck.” BrokerCheck is free online database intended to provide the investing public with an east way to research brokers and investment advisers before… Read More

Will Bill Introduced by Congressman Schweikert Finally Fix the Definition of an Accredited Investor?

Accredited Investor Qualifcations featured

The current definition of an accredited investor is something that has been in use for decades.  Basically the rule defines who may invest in certain private placement securities offers. In general you need to be earning over $200,000 a year ($300,000 if married) or alternatively have… Read More

Capital Unbound; Piwowar Suggests Regulators Need Restraining & Crowdfunding Should Look to States

Michael Piwowar quote

A CATO Institute event on the status of capital markets in the US provided a bright spot to an otherwise bleak and rainy day in New York City. Amidst the libertarian rhetoric and literature, two speakers stood out with certain observations and proposed remedies to… Read More

Regulatory Morass: A Visual Depiction of the Convoluted Financial Sector Rules (Infographic)

Cost of Excessive Regulations

SEC Commissioner Daniel Gallagher has completed the final update of his “crazy quilt” chart of regulations that smother financial services firms.  It is a wonder that anyone working in the financial sector does anything else but adhere to rules.  And these are the rules implemented… Read More

CrowdBnk CEO: The UK Has the Best Crowdfunding Regulation

10£ Darwin Highlight Money British Pounds

In a highly regulated industry, such as finance, there will never be a perfect set of rules. The diversity of opinion and perspective by nature engenders a constant debate between what is right – and what is wrong.  The internet finance industry has evolved quite… Read More

SeedInvest: By Using Reg A+, Issuers May Avoid VC “Strings”

The Real Fred Wilson

There has been much debate, discussion and recent consternation regarding Title IV of the JOBS Act, something commonly labeled as Reg A+.  Some prognosticators believe it is much ado about nothing but others believe Reg A+ can become an important step in the evolving capital… Read More

Slam: California Misses Another Opportunity to Legalize Equity Crowdfunding

Disaster Thud Kaboom

According to SFGate over 650 bills hit the Senate Appropriations Committee this past Thursday: “On Thursday the Senate and Assembly weeded through more than 650 bills at an auctioneer-like pace in appropriations committees.” As part of this legislative finesse, the state of California has tossed… Read More

Financial Conduct Authority Pushes Forward on Investment & Corporate Banking Competition Study

The Future of Banking

The Financial Conduct Authority (FCA) is proceeding with a study on competition in investment and corporate banking. The FCA states that these markets are the “cornerstone of the UK economy” for business expansion and funding operations. The study will focus on choice, transparency, bundling and cross-subsidisation in… Read More

SEC Schedules Next Meeting of the Advisory Committee on Small & Emerging Companies

Walking to the SEC Securities and Exchange Commission

The Advisory Committee on Small and Emerging Companies (ACSEC) has scheduled its next gathering to be held at the SEC offices on June 3rd.  The announced agenda lists topics including; public company disclosure effectiveness, intrastate crowdfunding, venture exchanges, and treatment of “finders.” SEC Chair Mary Jo… Read More

Interview: Funding Circle Co-Founder Sam Hodges Talks Regulations, Factors Driving P2P Lending In The US

Sam Hodges Funding Circle Quote

  Skim the peer-to-peer lending headlines over the last few months, and Funding Circle is a regular part of the news cycle. This year alone, the 5-year-old company received a capital boost to the tune of $150 million (the equity funding round was led by DST Global with participation from Baillie Gifford,… Read More

Crowdfunding Industry Fights Back: Issues Statement Opposing State Lawsuit to Block Regulation A+

Knock Out Punch

CFIRA and CfPA Issue Joint Statement Regarding Lawsuit Against the SEC to Block Implementation of Regulation A+, Title IV of the JOBS Act In a joint statement released today by the leadership of crowdfunding industry associations Crowdfunding Intermediary Regulatory Advocates (CFIRA) and the Crowdfunding Professional… Read More

The State of Massachusetts vs. Regulation A+: State Regulators Take the SEC to Court

William Galvin Fight Regulation A+

On the eve of the 2015 Memorial Day weekend, Massachusetts Secretary of State William Galvin set the stage for what I expect will be the final chapter in the continuing saga of what has popularly been referred to as Regulation A+,  a newly created avenue… Read More

Canada: There’s a New Way for Companies to Raise Capital from the Crowd

Canada Equity Crowdfunding

Six Canadian provinces jumped into the equity crowdfunding space in a big way on May 14, 2015. British Columbia, Saskatchewan,  Quebec, Manitoba, New Brunswick and Nova Scotia announced a new prospectus exemption for early stage companies to raise capital. When I first read the press release,… Read More