New Platform

[DJDJ]

Jurisdiction

Oregon

If I have a platform for everyday people as well as businesses to create their own funds, which others can purchase a stake in, perhaps similar to an operating fund or ETF, do I need to register with the SEC and FINRA to legally do that?

 

[Tax Counsel]

If I have a platform for everyday people as well as businesses to create their own funds, which others can purchase a stake in, perhaps similar to an operating fund or ETF, do I need to register with the SEC and FINRA to legally do that?

The answer to that depends very much on exactly what this platform is and what it does. You really ought to have those details reviewed by a securities law attorney for advice. If you don't comply with federal securities laws when required that can be very costly.

 

[flyingron]

TC is 100% right as usual. FINRA does indeed handle the registration and some regulation of funding portals, and there's more required than just registration. Also, it doesn't take much to step over the line of falling under the funding portal provisions (2012 JOBS act mostly) and put you in the position of being a dealer/broker or even worse the creator of illegal securities.