Tagged: regulations

August 14, 2015 @ 4:00 pm By Anthony Zeoli  |  

Last week the Securities and Exchange Commission (SEC) responded to a “no-action” letter (RE: Citizen VC, Inc.) concerning the establishment of “substantive relationships” with previously unknown potential investors and what constitutes “general solicitation” in the context of a private securities offering. The SEC also issued… Read More

August 13, 2015 @ 2:45 am By Midori Yoshimura  |  

  “Finding the right balance between financial reform and risk prevention will be one of the most important issues of our time,” writes Ruizhe Zhang of Dagong Global Credit Rating Co Ltd, in a recent China Daily op-ed on ECNS. Following the release of Internet finance guidelines… Read More

August 12, 2015 @ 3:04 pm By JD Alois  |  

Kiran Lingam, Managing Director at LendTech Angels, has published his thoughts on the Citizen.VC No-Action letter released earlier this week.  Lingam, a securities attorney by education, sees the clarification pushing marketplace lenders to use 506(b), as opposed to utilizing 506(c) – an exemption that allows… Read More

August 12, 2015 @ 8:47 am By JD Alois  |  

Real estate platform RealtyShares has shared their perspective on the recent no-action letter issued by the SEC in response to an inquiry by Citizen VC, Inc. as to that company’s method of onboarding new investors. The letter forwarded to the SEC by Citizen.VC counsel Mintz Levin outlined several policies and… Read More

August 11, 2015 @ 9:32 pm By JD Alois  |  

Citizen.VC, a online investment platform that leverages 506(b) Reg D private placements but NOT 506(c) placements, has received a “No Action” letter from the SEC regarding questions and clarifications as to what qualifies as general solicitation and the establishment of relations with investors.  The guidance… Read More

August 11, 2015 @ 10:33 am By JD Alois  |  

On August 5th the US Department of Treasury hosted over 80 individuals as part of a series of roundtables and information seeking events to discuss the fast growing sector of Marketplace Lending.  This past July, Treasury published a “Request for Information” regarding Peer to Peer… Read More

August 11, 2015 @ 8:47 am By JD Alois  |  

Paul Niederer, CEO of ASSOB – one of the very first investment crowdfunding platforms ever, has shared his opinion of the recently published a regulatory framework for crowdfunding in Australia and, in brief, he thinks it is wrong. Forest for the Trees Niedierer believes the… Read More

August 11, 2015 @ 1:13 am By Midori Yoshimura  |  

  While shares of Mogo Finance Technology Inc. have slid from $10 to $6 since the IPO–the company was the first Canadian online lender to go public–all is far from lost. After the $50-million IPO on June 25, Cormark research analysts Jeff Fenwick and Richard Tse believe the stock will… Read More

August 10, 2015 @ 4:12 pm By JD Alois  |  

The China Supreme Court released a judicial interpretation regarding liability for loans gone bad originated on peer to peer lending platforms. The court has stated that while borrowers receive funds via the platforms these intermediaries are not required to guarantee the loans and should not be held… Read More

August 10, 2015 @ 10:30 am By Candace Klein  |  

  As traditional lending tightened for consumers and small businesses, following the 2008 recession and the Dodd Frank regulatory environment that followed, alternative lending has now become quite the burgeoning new industry. And with alternative lenders ranging the gamut from near-bank products and terms to… Read More

August 10, 2015 @ 12:23 am By Midori Yoshimura  |  

  In the UK, more than 100 peer-to-peer lenders have applied for full authorization from the Financial Conduct Authority (FCA), which took over regulation of P2P last year, notes the Financial Times. Nearly 180 companies have interim permission to operate, according to figures obtained from the FCA… Read More

August 9, 2015 @ 3:02 pm By JD Alois  |  

Below is the consultation paper released by the Australian government that explains the proposed framework to facilitate equity crowdfunding. The Aussie government is accepting feedback on the proposals presently with the deadline for submission being on August 31st. Australia has recognized that reducing regulatory burdens… Read More

August 5, 2015 @ 8:51 am By JD Alois  |  

In what may be his last speech as an SEC Commissioner, Daniel Gallagher addressed the US Chamber of Commerce and criticized parts of the SEC, and much of the new world order of regulatory over-sight.   Gallagher scorched Dodd-Frank as a grandiose plan that has increased the fragility of… Read More

August 3, 2015 @ 1:25 pm By JD Alois  |  

The United Kingdom has been very vocal, and aggressive, in courting financial firms and FinTech startups. Chancellor of the Exchequer George Osborne wants the UK to be the world leader in developing innovative FinTech firms.  Osborne enjoys a partnership with his objective in Prime Minister… Read More

August 3, 2015 @ 8:37 am By JD Alois  |  

Crowdfund Insider reported last month on the US Department of Treasury’s interest in the fast growing Marketplace / Peer-to-Peer lending space. Treasury published a “Request for Information” (embedded below) seeking public comment to study the various business models and review “how the regulatory framework should… Read More

July 29, 2015 @ 11:56 pm By Anthony Zeoli  |  

Today marks a landmark day for Illinois entrepreneurs and investors as Governor Bruce Rauner signed and approved the Illinois Intrastate Crowdfunding Bill (HB 3429). The bill was passed unanimously by the Illinois House of Representatives and Senate back in late May but with the Governor’s… Read More

July 27, 2015 @ 12:12 am By JD Alois  |  

  Last week Crowdfund Insider published a report on how the US Department of Treasury was investigating marketplace lending and the rising prominence of online, direct lenders. While the interest is certainly understandable, anytime the government shows up – industry gets concerned.  While Treasury stated their… Read More

July 26, 2015 @ 10:43 pm By JD Alois  |  

New Jersey recently presented a job creation and economic growth package and as part of the legislative push the state may legalized investment crowdfunding.  The New Jersey bill allows entrepreneurs based in the state to seek up to $1 million in private capital.  Non accreds… Read More

July 26, 2015 @ 10:26 pm By JD Alois  |  

The European Securities & Markets Authority (ESMA) has published a Q&A addressing the potential for nefarious characters to abuse investment crowdfunding to launder cash or provide financing to terrorist organizations.  This is a subject the traditional banking sector knows rather well as they are subjected… Read More

July 19, 2015 @ 11:52 pm By Midori Yoshimura  |  

    With China’s stock market crash still recent, the People’s Bank of China (PBC) released guidelines for the country’s rapidly burgeoning online finance market at the start of this weekend, outlined in a document published by the PBC.  The peer to peer lending industry in… Read More