FINRA Seeks Public Comment on Crowdfunding by August 31, 2012
The Financial Industry Regulatory Authority (FINRA), the largest independent regulator for all securities firms doing business in the United States, announced it is seeking public comments on crowdfunding regulation under the new JOBS Act.
The Jumpstart our Business Startups Act is aimed at increasing American job creation and economic growth—contains key provisions relating to securities offered or sold through “crowdfunding.” Under the new law, intermediaries performing crowdfunding on behalf of issuers must register with the Securities and Exchange Commission (SEC) as a “funding portal” or broker and must register with an applicable self-regulatory organization (SRO). FINRA is soliciting public comment on the appropriate scope of FINRA rules that should apply to member firms engaging in crowdfunding activities, either as funding portals or as brokers.
Questions regarding this Notice should be directed to:
- Gary L. Goldsholle, Vice President and Associate General Counsel, Office of General Counsel (OGC), at (202) 728-8104; or
- Adam H. Arkel, Associate General Counsel, OGC, at (202) 728-6961
The Crowdfund Intermediary Regulatory Advocates has been active in meeting with FINRA, the Securities and Exchange Commission and other constituents to help formulate effective rules to carry out the spirit of the JOBS Act. “To be clear, CFIRA’s role for the next 190 days of the 270-day rule-making period is, specifically, to serve as a voice of the industry with the appropriate regulators and to provide continuing regulatory education to the industry,” said Candace Klein, chair of CFIRA and founder of SoMoLend.com, a debt-based crowdfunding platform.
Feature photo (c) Photodune.