FINRA is requesting that crowdfunding platforms, websites, portals and companies voluntarily submit a report (a fairly simple form) to FINRA for its records. Aside from a nasty political way to overpower the much-maligned SEC, FINRA is probably making this bold move for the following reasons, according to Douglas E. Castle, CEO of CFI - CrowdFunding Incubator LLC, a new and unique crowdfunding and comprehensive business and organizational resources and services site which intends to be one of the first organizations to comply with FINRA's request:
1) To familiarize itself with the workings of the industry and the different types of participants involved;
2) To use the first group of respondents to help it in establishing a regulatable and sustainable "norm" for the industry;
3) To serve as a prelude to a mandatory filing of reports, making crowdfunding (even if there involves no offering of securities) into a regulated business; [read more...]
http://bit.ly/Y2kYMu
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