Corporate Finance & Securities

FINRA Authorizes Collection of Information from Funding Platforms

The frustrations have been loud and clear from funding platforms, investors, and bloggers alike regarding the SEC’s failure to implement rules governing online fundraising under the JOBS Act. The SEC has been dragging its feet and has missed just about every deadline that was set for it to enact the regulations that will allow investors and fundraisers to connect via online funding portals. However, in early December FINRA took a small step in the right direction.

The FINRA Board of Governors met to discuss a number of regulatory issues, including funding portals and the JOBS Act. The result? The Board authorized FINRA to create a form that is geared towards obtaining information from funding platforms that are intending to register with FINRA pursuant to the JOBS Act. Essentially, prospective funding platforms would file the form with FINRA voluntarily until the final rules are implemented by the SEC and FINRA.

Like we said, it’s a small step, but at least we know this is at least on the radar for FINRA.


Gavin Johnson

Gavin enjoys craft beer and is learning the art of brewing.

146 N Canal Street, Suite 350   |