Tagged: legal

Is Your Crowdfunding Portal Ready For Your First FINRA Exam?

With the one year anniversary of Crowdfunding under Regulation Crowdfunding occurring on May 16th, business executives and compliance officers at registered Crowdfunding Portals (CFPs) should be actively preparing for their first regulatory examination by the Financial Industry Regulatory Authority (FINRA).   FINRA’s 2017 exam cycle… Read More

Commercial for YayYo Reg A+ Crowdfunding “IPO” Offer May Push Promotion Too Far

Earlier this month I was running CNBC in the background and a commercial came up that caused me to pause. On the screen was a besuited old white male pitching the next great investment. Coming off a bit like a used-car salesman, I learned later… Read More

How To Blow Your Reg D Offering: General Solicitation

Welcome to Part 1 of a series discussing the various ways an issuer can easily screw up their offering. In this part, we’ll be talking about general solicitation as it applies to Regulation D (Reg D) offerings. For those that are unaware, Reg D is, for… Read More

The Fix Crowdfunding Portion of the Financial Choice Act is Not Much of a Fix

The Financial Choice Act is a valiant effort to address the profound shortcomings of the Dodd-Frank law. Dodd-Frank has been lambasted as regulatory overreach driven by politicians that really don’t quite understand what they are doing. At worst, Dodd-Frank has institutionalized too big to fail…. Read More

SEC Proposes Changes to Investment Adviser Act for Small Business Investment Company Advisers

On May 3, 2017, the SEC released its proposed amendments to the Investment Advisers Act (the Advisers Act) to reflect changes made under the Fixing America’s Surface Transportation Act (the FAST Act). The FAST Act, which was passed in 2015, amended sections 203(l) and 203(m) of… Read More

Failure to File Ongoing Reports Could Lead to ‘Permanent Put’ on Reg CF Issuers

Speaking on a panel at the 4th Annual CrowdfundingUSA Conference today, Sarah Hanks, CEO and Founder of CrowdCheck Inc., talked about some of the compliance issues facing Regulation CF issuers. Issuers Are Not Filing Annual Reports One of the biggest issues discussed was the ongoing reporting… Read More

Regtech Reducing Compliance Costs for Early Adopters in Financial Markets

Last week, TABB Group released a report entitled “Financial Markets: Embracing RegTech” which focused on the growing issue of increasing regulatory compliance facing financial institutions today. TABB Group is an international research and consulting firm focused on capital markets. Problem: Increasing Regulations Post-2008 The global financial… Read More

German Crowdfunding Association Urges Regulator Not to Exclude Real Estate from Crowdfunding Regulation

Since the beginning of this year, the German government has undertaken a review of the crowdinvesting regulation introduced in July 2015. It has now officially released its conclusions and is proposing several changes to the existing law, including a most controversial exclusion of real estate… Read More

Crooked Crowdfunders: Prominent Crowdfunding Marketing Firm “Funded Today” Gets Fleeced But Fights Back & Wins

First Successful Arbitration Settlement Against a Crowdfunding Scofflaw Prominent crowdfunding marketing firm Funded Today is perhaps the most successful agency in their space today. Having helped to direct more than 300 perk-based crowdfunding campaigns to financial success, Funded Today has now been instrumental in raising… Read More

Rule 506, Reg D: Two Ways to Conform with SEC Exemption Law

According to the Securities Act of 1933, any company that sells securities must either register with the Securities and Exchange Commission (SEC) or file for an exemption. The JOBS Act 2012 provides a way for companies to use crowdfunding as a means of selling securities,… Read More

Law Firm Perkins Coie Boosts Fintech Practice with New Hires

Perkins Coie LLP, a legal firm with offices in the United States and Asia, has boosted their Fintech horsepower with the addition of Jacob S. Farber and Frederick B. Fedynyshyn as senior counsel in its Technology Transactions & Privacy practice. Perkins Coie considers itself legal experts… Read More

SEC Releases New Compliance & Disclosure Interpretations On Regulation Crowdfunding

Yesterday, the SEC’s Division of Corporate Finance released two new Compliance & Disclosure Interpretations (C&DIs) answering questions related to Regulation Crowdfunding (Reg CF). CD&Is are the Commission’s way of giving some informal guidance, through a question and answer format, on how its staff members interpret certain rules. They… Read More

Are Overseas Portals the Next Big Thing in US Equity Crowdfunding?

Much excitement has been generated with the enactment of Regulation Crowdfunding (Reg CF) and the ability of non-accredited investors to invest in startup companies in the United States. The SEC recently reported that while early capital raising efforts is still growing, Regulation Crowdfunding has provided… Read More

Attention! Crowdfunding (Reg CF) Filing Deadline: Don’t Get Caught Unaware

Many entrepreneurs that successfully raised money using the newly enacted Regulation CF (or Reg CF for short) have likely tried to put the tiresome process behind them and are focusing on company operations and executing on their business plans. However, all successful issuers need to… Read More

Why Your Initial Coin Offering Is Probably Regulated By Securities Law

It seems that at least once a week nowadays, I get a call asking whether an initial coin offering (ICO) is regulated at all, and the question came to a head at a recent Legal Hackers LA discussion on smart contracts by Daniel Rice. The… Read More

Lending Club Wins Motion to Compel Arbitration. Avoids Class Action.

Lending Club (NYSE:LC) has was a significant court victory regarding its ability to compel arbitration. The case Bethune v. LendingClub Corp. was filed in the Souther District Court of New York in 2016. The issue pertained to the interest rate a New York resident was being charged… Read More

Gust Launch Starts with a Bang! Global Startup Ecosystem Adds Services to Help Entrepreneurs Launch New Companies

Gust Launch is a relatively new addition to the Gust portfolio of services for startups. Gust Launch is described as; “one platform to easily incorporate, start, and run your company like a seasoned entrepreneur—designed by experienced startup founders, investors, and lawyers to help you from… Read More