The CfPA (Crowdfunding Professional Association ) Board of Directors has distributed a note on the adoption of its recommendations regarding best practices.
According to the CfPA, the Board is now recommending that members use the term “Regulated Investment Crowdfunding.”
President of CfPA Brian Christie issued the following statement on the announcement:
“Widespread confusion among investors, issuers, and industry participants prompted CfPA to recommend the use of ‘Regulated Investment Crowdfunding.’ This term helps distinguish our industry from the operations of unregulated entities and unlicensed ‘crowdfunding’ platforms. By embracing ‘Regulated Investment Crowdfunding,’ we not only clarify our industry’s scope but also underline the legal and regulatory frameworks that govern our operations,” he continued. “This term will serve as a cornerstone for reducing marketplace confusion, improving marketing efforts, and supporting the overall growth and advancement of the industry.”
The CfPA is asking industry participants to use the hashtag #RIC to represent Regulated Investment Crowdfunding.