Politics, Legal & Regulation

January 2, 2016 @ 3:00 pm By JD Alois  |  

The past year was a memorable one for the Securities and Exchange Commission (SEC). The Commission finally completed all of the mandated rules under the JOBS Act, alongside significant work regarding Dodd-Frank and other required rule changes (and the never ending cascade of enforcement actions)…. Read More

January 2, 2016 @ 9:04 am By Barry James  |  

2015 Was the Year  of Change Crowdfunding became mainstream – in the sense that it was accepted as part of the ‘new normal’ and not a fad that’s going to fade away In the USA the SEC finally, perhaps reluctantly, followed the Fintech leaders in… Read More

December 31, 2015 @ 8:24 am By JD Alois  |  

The Securities and Exchange Commission (SEC) has compiled a quick infographic on the top ten searches on their site.  Number 1 and 2 have to do with criminal actions: Fraud and Embezzlement.  Not too surprising.  In fact, many of the approximately 4000 SEC employees spend… Read More

December 28, 2015 @ 8:56 am By JD Alois  |  

As has been widely expected for some time, China regulatory authorities revealed proposed rules to reign in the fast growing peer to peer lending industry.  While online lending has filled a serious void in providing access to capital the lack of rules have created an… Read More

December 26, 2015 @ 12:42 pm By JD Alois  |  

  The end of one year, and the entry into another, typically brings a cacophony of predictions for the new year along with lamentations and accolades for the one ending. At the beginning of 2015 (January 2nd to be precise), I peered deeply into my… Read More

December 26, 2015 @ 8:36 am By JD Alois  |  

Outgoing Commissioner Luis Aguilar recently published commentary reflecting upon his many years of service at the Securities and Exchange Commission.  Aguilar is one of the longest serving Commissioners ever and was uniquely appointed by both a Democrat and Republican President.  He follows Commissioner Gallagher‘s departure… Read More

December 24, 2015 @ 12:23 pm By JD Alois  |  

The International Organization of Securities Commission (IOSCO) has published a report on the regulation of crowdfunding.  This is a follow on to an IOSCO working paper that was published in 2014 and largely focuses on the potential for fraud and risk.  As national regulations have… Read More

December 24, 2015 @ 9:48 am By JD Alois  |  

The relatively new office of the Investor Advocate has published its annual report.  The SEC was mandated to create the Investor Advocate as part of Dodd-Frank.  Rick Fleming, previously an attorney with  NASAA, was appointed  as the Commission’s first IA. This is the second annual… Read More

December 23, 2015 @ 9:53 am By JD Alois  |  

There is currently a bill weaving its way through Congress that will go a long way in addressing the regulatory negligence known as the definition of an accredited investor.  The SEC staff has proposed new rules, which the Commission may consider, that have the potential to… Read More

December 21, 2015 @ 8:07 pm By JD Alois  |  

Originally introduced this past Spring, Representative David Schweikert saw the “Fair Investment Opportunities for Professional Experts Act” (HR 2187 — 114th Congress) take another step forward on December 9th.  The House Financial Services Committee saw it approved by a vote of 54 yeas to just… Read More

December 21, 2015 @ 2:20 pm By JD Alois  |  

The Parliament committee on Business, Innovation and Skills (BIS), has launched an inquiry regarding access to finance.  According to information posted on the UK Parliament site, members are seeking to better understand how access to finance has developed since the financial crisis and what exactly… Read More

December 21, 2015 @ 7:45 am By Erin Hobey  |  

  “We believe the potential of crowdfunding is not about a single company or single crowdfunding platform.  It is about the evolution from an institutional framework for allocating capital (otherwise known as banks, funds, and foundations) to a more individually driven framework enabled by existing and… Read More

December 19, 2015 @ 1:54 pm By JD Alois  |  

Dodd-Frank, the massive law passed in the midst of the Great Recession, touched many aspects of the financial industry.  One portion of the bill was a requirement to review the definition of an Accredited Investor “as it relates to natural persons” every four years.  The… Read More

December 17, 2015 @ 1:37 pm By JD Alois  |  

Portugal has published proposed investment crowdfunding regulations in a consultation paper that is open for comments. The document posted by theComissão do Mercado de Valores Mobiliários (CMVM), embedded below, proposes a cap on funding at one million euros within a 12 month period. The consultation… Read More

December 17, 2015 @ 1:20 pm By Erin Hobey  |  

To help minority-owned small businesses navigate the evolving lending landscape and secure the right financing they need to grow, Funding Circle, a leading marketplace for business financing, has partnered with the Minority Business Development Agency (MBDA), a bureau of the U.S. Department of Commerce. This news… Read More

December 15, 2015 @ 1:24 pm By Erin Hobey  |  

The Small Business Finance Association (SFBA) announced today the hiring of Stephen Denis as its executive director. Denis was formerly the Deputy Staff Director of the House Committee on Small Business and brings over 12 years of public policy experience to the SBFA. “The innovative companies… Read More

December 15, 2015 @ 11:05 am By JD Alois  |  

The California Department of Business Oversight (DBO) has launched an inquiry into the Marketplace Lending (P2P) industry. DBO Commissioner Jan Lynn Owen was quick to caution they do want the industry to grow but want to “protect” consumers.  Owen stated; “These online lenders are filling a… Read More

December 14, 2015 @ 9:30 am By Andrew Stephenson  |  

On May 16, 2016, the Securities and Exchange Commission’s rules implementing Title III of the JOBS Act will come into effect, allowing companies to raise funds under Section 4(a)(6) of the Securities Act. The SEC made some important improvements over the proposed rules that will… Read More

December 14, 2015 @ 8:39 am By JD Alois  |  

The Financial Conduct Authority (FCA) has posted a public request for feedback on regulation in the context of the social investment market.  The FCA defines social investment as “investments where the aim is to provide a wider social benefit, rather than the primary driver being… Read More

December 11, 2015 @ 12:08 am By Midori Yoshimura  |  

In India, crowdfunding norms will soon be put into place to help entrepreneurs raise funds through crowdfunding, and discussions are underway to allow sale of mutual funds through e-commerce platforms, announced U. K. Sinha, chairman of India’s capital markets regulator, the Securities and Exchange Board of India (SEBI),… Read More