Tagged: finra

FINRA Issues Special Notice on Fintech and the Broker Dealer Industry

  FINRA (Financial Industry Regulatory Authority) has issued a consultation on Financial Technology or Fintech and the Broker Dealer industry. The Special Notice was published at the end of July and is seeking comments until October 12, 2018. FINRA currently has over 3700 member firms… Read More

Attorney Steven Gatti: “FINRA’s Digital Assets Notice is Sweeping in its Coverage and Raises Important Considerations”

Recently, the Financial Industry Regulatory Authority (FINRA) – the self regulatory organization (SRO) that oversees broker dealers and other financial firms – issued a “Regulatory Notice” on digital assets. Digital assets, as defined by FINRA, include just about anything associated with blockchain including digital assets that… Read More

FINRA “Encourages” Investment Broker-Dealers to Disclose Crypto Activities

The Financial Indunstry Regulatory Authority (FINRA), a self regulatory organization that oversees the conduct of investment product dealers in the US, has urged firms to ongoingly and voluntarily disclose any involvement they may have with cryptocurrency products (digital assets) and production, and reminds them to,… Read More

There are Now 41 Reg CF Crowdfunding Portals 2 Years After JOBS Act Exemption Commenced

The number of Reg CF crowdfunding platforms in the US continues to slowly grow with several recent additions. Last time we reviewed the number of FINRA approved investment platforms in March, there were 38 regulated sites. So what has changed? First, to update on what… Read More

FINRA Sanctions Arthur Breitman, Co-Founder of Tezos

Arthur Breitman, AKA Arthur Meunier, was sanctioned by FINRA this past week for his dealings with the infamous Tezos initial coin offering (ICO) that raised approximately $232 million. Breitman signed the document on April 17th and it was accepted by FINRA on the next day. … Read More

FINRA Approved Reg CF Crowdfunding Portals: 38 and Counting

Last time we checked in back at the end of December, there were 36 FINRA approved Regulation Crowdfunding (Reg CF) portals in operation. Today, that number has increased to 38 as two more entrants have entered the Reg CF space. As for portals that have… Read More

Four Takeaways from SEC Warning that Cryptocurrency Exchanges May Be Unlawful Trading Platforms

On March 7, 2018, the Securities and Exchange Commission (SEC) issued a public statement warning that cryptocurrency coin exchanges were possibly operating as unlawful online trading platforms¹.  The SEC staff noted that “many online trading platforms appear to investors as SEC-registered and regulated marketplaces when… Read More

The ABCs of Investing in ICOs

Initial coin offerings (ICOs) have recently become very popular, causing investors of all levels of sophistication to consider buying ICO tokens (or coins). Regardless of whether you view ICO tokens as “investments,” or whether you want to buy tokens for their utility function to make… Read More

The 2017 State of Regulation Crowdfunding: US Securities-based Crowdfunding under Title III of the JOBS Act

Recently, my company crafted a report for the US Securities and Exchange Commission that summarizes progress on Title III of the JOBS Act of 2012, also referred to Regulation Crowdfunding or Reg CF. This newest securities exemption was added to the options that smaller companies… Read More

There are Now 36 FINRA Approved Reg CF Portals. Can They All Survive?

Last month, we visited the roster of FINRA approved Reg CF funding portals which stood at 34. Today, that number has increased by 2 so now it stands at 36 in total. Last week, we discussed the three Reg CF platforms that departed this segment… Read More

Three Reg CF Crowdfunding Portals are No Longer FINRA Approved

The Reg CF crowdfunding sector has had a mixed bag this year. While several platforms are experiencing success most approved portals have had little to no activity. This is due to a combination of ill thought out rules where myopic officials made compliance too harsh… Read More

ICO Advisors: Are they Broker-Dealers or Finders?


Despite the record success of many initial coin offerings (ICOs), raising capital for ICOs is a difficult process.  It is tempting to accept help anywhere one can get it, and there is no shortage of persons and companies clamoring to “find” or refer investors in… Read More

FINRA Moves to Boost Transparency & Communication with Member Firms

The Financial Industry Regulatory Authority (FINRA) has revealed several changes to its advisory committees. These changes are designed to increase transparency around the committees and improve their effectiveness as a vehicle for firms to provide input on key issues before FINRA. The move is part… Read More

There are Now 34 FINRA Approved Reg CF Crowdfunding Platforms

There are now 34 FINRA approved crowdfunding platforms leveraging Title III of the JOBS Act, widely called Reg CF. The number of Reg CF portals is inching higher having added 5 approved platforms since this past summer (after revoking Ufundingportal ‘s certification). Under Reg CF an… Read More

Pitfalls for Funding Platforms Continuing to Raise Capital over the Internet under Rule 506(b)

Even with the flexibility provided to Regulation D private placement offerings by Title II of the JumpStart Our Business Startups (JOBS) Act, U.S. Securities and Exchange Commission (SEC) data has consistently shown that most Regulation D offerings continue to raise capital under traditional Rule 506(b). … Read More

A New Direction for FINRA? – Washington, DC & Live Stream

The Financial Industry Regulatory Authority (FINRA) is a regulator of central importance to the functioning of U.S. capital markets. It regulates nearly 4.000 broker-dealers and almost 650,000 registered representatives.  It is a private, not-for-profit organization. In 2015, FINRA levied $94 million in fines against broker-dealers,… Read More

Is FINRA Broken? Does FINRA Need to be Fixed?

The Financial Industry Regulatory Authority or FINRA is currently in the midst of a comprehensive review of its rules and practices. The internal project has been labeled FINRA 360 and is said to ensure that FINRA is operating as the most effective self-regulatory organization it can be…. Read More

Return of Congress: Two Congressional Hearings to Watch Next Week

Congress returns next week hopefully reinvigorated and ready to reduce regulation and pass meaningful tax reform following some time off. Congress has not accomplished too much this year, much like many past years, but hope springs eternal and after a bumpy start of the year… Read More

FINRA Wants to Better Understand Fintech. Launches “Innovation Outreach Initiative”

The Financial Industry Regulatory Authority (FINRA) has created a new entity to help it better understand Fintech innovation. Announced today, FINRA has created “Innovation Outreach Initiative” to “foster an ongoing dialogue” with the securities as finance goes digital. FINRA says the initiative will build on… Read More

There are Now 29 FINRA Regulated Reg CF Crowdfunding Portals

The number of FINRA approved and regulated crowdfunding portals has been inching higher. Today, there are 29 different Reg CF crowdfunding platforms each targeting the new securities exemption created under the JOBS Act 0f 2012. At the beginning of 2017, that number stood at 22… Read More