United States

SEC Posts Funding Portal Registration Guide in Anticipation of New Crowdfunding Rules

Feb 08, 2016
From the Financial Reporting Network

New SEC crowdfunding rules that permit start-ups and small companies to publicly raise capital will take effect on May 16, 2016. In anticipation of those new rules, the SEC posted to its Web site Small Entity Compliance Guide for Funding Portal Registration.

The crowdfunding rules require an entity to use an intermediary (a broker-dealer or a funding portal) to conduct crowdfunding offerings. Sole proprietorships, partnerships, corporations, limited liability companies, and other organized entities that are not registered as broker-dealers but that wish to act as intermediaries in crowdfunding transactions must register with the SEC as funding portals, using the new SEC Form Funding Portal that became available on January 29. All registered funding portals are required to become members of a registered national securities association. The Financial Industry Regulatory Authority (FINRA) is currently the only registered national securities association.

Read SEC Funding Portal Registration Guide