1. Free Legal Help, Legal Forms and Lawyers. TheLaw.com has been providing free legal assistance online since 1995. Our most popular destinations for legal help are below. It only takes a minute to join our legal community!

    Dismiss Notice

New Platform

Discussion in 'Banking, Finance, Investments' started by DJDJ, May 20, 2021.

Thread Status:
Not open for further replies.
  1. DJDJ

    DJDJ Law Topic Starter New Member

    Messages:
    1
    Likes Received:
    0
    Trophy Points:
    1
    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?
     
  2. Tax Counsel

    Tax Counsel Well-Known Member

    Messages:
    2,035
    Likes Received:
    1,190
    Trophy Points:
    113

    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.
     
    zddoodah and hrforme like this.
  3. flyingron

    flyingron Well-Known Member

    Messages:
    1,003
    Likes Received:
    478
    Trophy Points:
    83

    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.
     

Share This Page

Thread Status:
Not open for further replies.