Tagged: sec

Med-X in Hearing Before Administrative Judge this Month

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Med-X, a marijuana-based startup, is engaged in a public hearing this month before Administrative Law Judge Jason S. Patil. The hearings pertain to an attempt to raise capital that was described as the first ever Reg A+ investment crowdfunding round for the Cannabis industry. The proceedings are… Read More

Jay Clayton to Join SEC During Unprecedented Need to “Cut the Red Tape”

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Financial regulations are often enacted with little concrete definition, to say nothing of quantification, of their costs and benefits. Regulators and economists have little understanding of causal mechanisms that may provide benefits and incur costs. Worse, they often think they know cause and effect, either… Read More

Attorney Jay Clayton is Trump’s Pick for SEC Chair [u]

Clayton, Jay
Sullivan & Cromwell

Multiple news sources are reporting that Jay Clayton will be President-elect Donald Trump’s selection for the Chair of the Securities and Exchange Commission (SEC). Reuters published a statement by President-elect Trump; “Jay Clayton is a highly talented expert on many aspects of financial and regulatory law, and… Read More

Online Lending Enters Annual SEC Report on Rating Organizations for First Time

Computer Heat map trading

The Securities and Exchange Commission publishes an annual report on “nationally recognized statistical rating organizations (NSROs).”  These are the agencies that publish credit ratings on certain securities and institutions.  The mandated report has recognized the emergence of online lending for the very first time. The document… Read More

Why I am “High” on the Prospects for SME’s in 2017

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The beginning of a new year is typically accompanied by renewed hope and positive expectations. 2017 is no exception.  As a staunch advocate of promoting the interests of small business generally, and smart regulation of capital formation, in particular, 2017 stands out to me as… Read More

Five Key Take-Aways from FINRA’s Expulsion of Crowdfunding Portal UFP

Doom Ride Mortals Danger

FINRA recently completed a settlement expelling from FINRA membership UFP, LLC, a registered funding portal that operated under uFundingPortal.com.   The matter marks both early and decisive action by FINRA against a registered funding portal operating under Regulation Crowdfunding.  It establishes that FINRA takes seriously… Read More

2017 Holds Promise for Tax & Financing Policy for Startups

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2016 brought with it many positive developments for startups in terms of capital access and tax policy. Investment crowdfunding finally went live, a number of bills to facilitate capital formation passed the House, and the startup community galvanized around a tax bill that would make… Read More

Needed Policy Reforms to Improve Entrepreneurs’ Access to Capital

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Capital formation and entrepreneurship improve economic growth, productivity and real wages. Existing securities laws impede entrepreneurial capital formation. To promote prosperity, Congress and a reconstituted Securities and Exchange Commission need to systematically reduce or eliminate state and federal regulatory barriers hindering entrepreneurs’ access to capital…. Read More

FINRA Action on uFundingportal: Potential for Fraud Found on Crowdfunding Platform

Danger Beware

uFundingPortal (UFP, LLC), disappeared from the ranks of approved Reg CF crowdfunding platforms in early November. Before their removal, a multitude of crowdfunding industry insiders questioned the operation and the investment offers posted on the site. The posted investments lacked transparency while proposing valuations and… Read More

Equidate Settles with SEC for $80,000 for Selling Pre-IPO Shares

expired-penalty-fine-times-up

Equidate has settled with the SEC for selling unregistered swaps involving pre-IPO companies. The San Francisco-based Fintech firm agreed to settle the charges it had violated federal securities laws by failing to register security-based swaps that were sold online to shareholders in pre-IPO companies. Equidate stopped offering security-based… Read More

My 2017 Crowdfunding Wish List

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2016 brought with it many developments in the crowdfunding industry, most notably the introduction of the long-awaited Title III crowdfunding. While admittedly not all crowdfunding legislation passed  was as influential, there have been significant strides made to improve existing securities regulations and to continue prying… Read More

SEC Small Business Advocate Moves Closer to Reality as Senate Passes Bill

Christmas in Washington DC Capitol

The SEC Small Business Advocate Act of 2016 or HR 3784 passed the Senate on Friday (December 9, 2016) as part of a last-minute legislative push before Congress adjourns for the holiday season. The bill passed the House earlier this year meaning the bill will… Read More

Karen Mills, Harvard: Regulate, But Allow Online Lending Market Space to Innovate

Karen Mills and Barack Obama

Senior Fellow at Harvard Business School Karen Gordon Mills along with VP of Strategy at Fundera, Brayden McCarthy, have recently posted a working paper on SME lending. Mills is also the former Administrator of the Small Business Administration – a post she held during the Obama administration just… Read More

Doug Ellenoff & Richard Baumann of EGS Explain Unique Structure of Fig Reg A+ Crowdfunding Offer

Doug Ellenoff Singapore

Utilization of the updated securities exemption colloquially called Reg A+ continues to gain traction. A form of crowdfunding that has been described as a Mini-IPO type offering due to the scaled disclosure, reduced cost and the option to immediately trade shares, Reg A+ is an… Read More

NextGen Debuts New Indiegogo Equity Crowdfunding Tracker

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NextGen Crowdfunding announced on Thursday it is launching a new Indiegogo Equity Crowdfunding Tracker, called Indiegogo Crowdfunding Watch, This feature will track investor commitments through the crowdfunding platform. Sharing details about the new tracker, Dr. Richard Swart, Chief Strategy Officer at NextGen Crowdfunding, stated: “Indiegogo’s entrance into… Read More

SEC Advisory Committee on Small & Emerging Companies Schedules Public Call for December 7th

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The SEC Advisory Committee on Small & Emerging Companies (ACSEC) has scheduled a conference call for its next public meeting. The December 7 meeting of ACSEC will begin at 11:00 a.m. ET and live audio will be available on the SEC’s website.  According to the… Read More

Funding Wonder to Launch FINRA Registered Regulation Crowdfunding Platform

funding-wonder

Funding Wonder Crowd, LLC, a small business lending platform operator, announced on Wednesday it was approved by FINRA (the Financial Industry Regulatory Authority) as a licensed Regulation Crowdfunding Portal. Sharing details about the new crowdfunding platform, Michael Mildenberger, CEO of Funding Wonder, stated: “Funding Wonder is… Read More