Tag Archives: reasonable steps

SEC Permits Fall Back Verification Methods

The SEC has indicated that even if you cannot use one of the safe harbors under Rule 506(c) to verify that an investor is “accredited,” other evidence could be relied upon to do so under the “principles based” verification method. … Continue reading

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FINRA’s New Year’s Focus On Crowdfunding

FINRA released its new year’s analysis of risks that it will be focusing on in 2014 that relate to crowdfunding, including: cybersecurity, changes to Reg D permitting advertising, confirming accredited investor status, due diligence responsibilities, filings required in private placements, … 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

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New SEC Crowdfunding Guidance

The SEC has released a number of Q&A’s regarding the use of new Rule 506(c). This guidance includes such matters as: whether an issuer who has taken reasonable steps to verify its investor is “accredited” and later finds out that … Continue reading

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New Crowdfunding Rules Sow Confusion

The Wall Street Journal is reporting today that, notwithstanding the SEC’s formal and informal guidance on using Rule 506(c), that permits advertising for private placements so long as all investors are “accredited,” there is general confusion about how to comply … Continue reading

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The Crowdfunding Floodgates Open

With the amendment to Reg D permitting companies to advertise to the public their private placements, Angel List has opened its doors and now has 1,360 companies on their open website asking for money. It also advertises investing “syndicates” led … 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, Jobs, Legislative Intent, SEC, Small Business, Venture Capital, Wall Street | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment