Corporate Finance & Securities

FINRA Issues Voluntary Form for Crowdfunding Portals

Last week we wrote about the Financial Industry Regulatory Authority (FINRA) announcing the creation of a form for prospective funding portals. Just one week later, FINRA has issued the voluntary interim form for funding portals, which is designed to collect information from prospective crowdfunding portals under the JOBS Act. Those prospective funding portals may voluntarily submit information about their company, and FINRA will use the information it receives to develop rules specific to the regulation of crowdfunding portals.

Once FINRA and the SEC adopt funding portal rules, FINRA will create and issue a funding portal application. The interim form asks the funding portals for information regarding: ownership, funding, management, and business model and relationships.

It will be interesting to see how many prospective funding portals volunteer information on this preliminary form. Especially since each funding portal is bound to its responses provided on the interim form when they later apply for membership with FINRA. With so much uncertainty surrounding the final rules, there’s bound to be lots of changes in the crowdfunding portals responses as well.

The Executive Vice President of Regulatory Policy for FINRA said, “FINRA is committed to ensuring that the capital-raising objectives of the JOBS Act are advanced in a manner consistent with Congressional intent and investor protection. Crowdfunding portals that file this form will provide FINRA with important information regarding portal business models, which will inform our rulemaking.”


Gavin Johnson

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

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