In a step closer to formluating crowdfunding rules, FINRA has created an interim form for prospective crowdfunding portals.
Information businesses voluntarily submit on the form will be used to design rules specific to the portals.
The information will guide development of the rules for both FINRA and the SEC.
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FINRA and the SEC are in open dialogue discussing what the rules should look like.
The crowdfunding portals that submit information on the interim form will not be bound by their responses.
Once final rules have been developed, FINRA will issue a final registration form for FINRA regulation.
The rules are being designed to satisfy a mandate by the Jumpstart Our Business Startups (JOBS) Act that small businesses have easier access to capital.
Crowdfunding portals that file the interim form will offer FINRA important information that will help the regulatory organization design rules that will be in line with Congressional intent but that will also ensure adequate investor protection