Tag Archives: know your customer

Do You Trust Your Broker?

When your broker suggests that you put your money into one of her picks, is it good for you? Brokers’ duties include fair dealing, suitable recommendations, accurate disclosure, trade only by client instruction and avoiding excessive trading.  See: http://www.finrafoundation.org/web/groups/foundation/@foundation/documents/foundation/p119054.pdf However, there … Continue reading

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Crowdfunding Trust and Safety

Crowdfunding fraud can work in various ways. Kickstarter now has a “Trust and Safety Team” that reviews campaigns and responds to fraud complaints from donors. Many of the complaints focus on the failure to deliver rewards when promised. Delivery failure … Continue reading

Posted in Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Funding Portals, Investments, Jobs, Legislative Intent, SEC, States | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Watch Out For “Stupid” Investors

There’s been a lot of talk about “curating” issuers on funding portal sites. But what about curating investors? An article in IndieWire suggests that crowd funders should be wary of “stupid” investors. Those are apparently the unsophisticated types who think … Continue reading

Posted in Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, FINRA, Funding Portals, Investments, Legislative Intent, SEC, Small Business, Wall Street | Tagged , , , , , , , , , , , , , , , , , | Leave a comment

The Adults in the Room

The Crowd Fund Act seeks to have the funding portals manage and supervise the capital raising effort. Recent commenters have suggested that funding portals: (i) have FINRA as the only SRO (as well as for brokers); (ii) perform due diligence … Continue reading

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