Note from the Publisher: We’ve been remiss to cover the crowdfunding sector of late, but wanted you to be aware of a major action recently taken by FINRA regarding one crowdfunding portal that has been expelled by the regulator. Actually, this is an encouraging sign, as the industry needs regulatory policing to protect investors and gain additional tracton.
“FINRA recently completed a settlement expelling from FINRA membership UFP, LLC, a registered funding portal that operated under uFundingPortal.com. The matter marks both early and decisive action by FINRA against a registered funding portal operating under Regulation Crowdfunding. It establishes that FINRA takes seriously its new regulatory beat and that the gatekeeper function that portals are required to fulfill must be satisfied.
Here are key takeaways from FINRA’s action against UFP:
1) Funding portals, like broker-dealers, are gatekeepers….
2) UFP hosted suspicious issuers and offerings….
3) Overly-optimistic financial forecasts spell trouble….
4) Are Portals responsible for an issuer’s valuation?…
5) Unreasonable supervision….”
Read Full Article at Crowdfundinsider