FINRA and SEC Reg CF FAQs and Resources
FINRA Frequently Asked Questions Regarding Regulation Crowdfunding Compliance
FINRA Published a useful Frequently Asked Questions (FAQs) in December 2023. Questions include:
Who can offer or sell securities under Regulation Crowdfunding?
My firm is a registered broker-dealer and a member of FINRA. We want to begin making Regulation Crowdfunding offerings available on our platform to our customers. Do we have to notify FINRA?
Is it permissible for an issuer to conduct a Regulation Crowdfunding offering on its own website? What if the issuer’s website says that my firm is the intermediary for the offering?
What are “testing the waters” communications? Who is allowed to “test the waters” for investor interest in a potential offering under Regulation Crowdfunding?
Can an intermediary “test the waters” for investor interest in an offering?
After the Form C offering statement is filed with the SEC, is it permissible for an intermediary to make information about a Regulation Crowdfunding offering available only via a private link or private web page that is not publicly accessible to all viewers of the intermediary’s platform?
Is it permissible for a funding portal to highlight specific Regulation Crowdfunding offerings on its platform using terms such as “Hot this week,” “Almost Sold Out,” “Invest Now!,” “Last Chance,” or “Don’t miss this opportunity,” or similar terminology?
For more information, please refer to:
https://www.finra.org/registration-exams-ce/funding-portals/faq-regulation-crowdfunding
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The SEC Published an Updated Investor Bulletin: Regulation Crowdfunding for Investors.
Crowdfunding generally refers to a financing method in which money is raised through soliciting relatively small individual investments or contributions from a large number of people. Companies can use Regulation Crowdfunding to offer and sell securities to the investing public giving the public the opportunity to participate in the early capital raising activities of start-up and early-stage companies and businesses.
The SEC Published a useful Investor Bulletin in2022. Topics include:
Accredited and Non-Accredited Investors and How do I calculate net worth
How to make a Regulation Crowdfunding investment
Risks of Reg CF Investing
How do I get informed
What’s different about being a Regulation Crowdfunding investor
For more information, please refer to:
https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/updated-11
