Funding Portals

The Jumpstart Our Business Startups (JOBS) Act, enacted in 2012, amended the federal securities laws. Among other things, Title III of the JOBS Act contains key provisions relating to securities offered or sold through "crowdfunding." Crowdfunding generally refers to the use of the Internet by small businesses to raise capital through limited investments from a large number of investors.

The JOBS Act directed the SEC to make rules to implement the Act's crowdfunding provisions and requires FINRA to adopt rules written specifically for "funding portals," a new kind of intermediary that would perform crowdfunding on behalf of issuers. Under the JOBS Act, funding portals must register with the SEC and must become members of a registered national securities association. FINRA is the only registered national securities association.

On October 30, 2015, the SEC adopted Regulation Crowdfunding, which takes effect on May 16, 2016; however, the registration provisions under Regulation Crowdfunding, and the SEC's Form Funding Portal, become effective on January 29, 2016.

FINRA has proposed rules and forms for funding portals. Once the SEC approves FINRA's Funding Portal Rules and related forms, FINRA will issue a Regulatory Notice announcing the rules and providing information for prospective funding portal applicants. FINRA cannot accept applications for funding portal membership prior to that time.

FINRA has established fee provisions that will apply to funding portals. The application fee for funding portal membership will be $2,700.

Titlesort descendingTypeDate
Proposed Rule Change to Adopt the Funding Portal Rules and Related Forms and FINRA Rule 4518
Rule Filing10-09-2015
Proposed Rule to Establish Fees for Funding Portals
Rule Filing10-09-2015
Regulatory Notice 13-34
FINRA Requests Comment on Proposed Funding Portal Rules and Related Forms
SR-FINRA-2013-005Rule Filing01-10-2013
Regulatory Notice 12-34
FINRA Requests Comment on Proposed Regulation of Crowdfunding Activities