FINRA Requests Comments on Proposed Funding Portal Rules (Fed. Reg.)

FINRA solicited comments on fund portal rules that were proposed previously and revised subsequently by Amendment No. 1.

The new rules were promulgated pursuant to the 2012 JOBS Act, which "prohibits funding portals from a variety of activities, including offering investment advice or recommendations, soliciting transactions for securities displayed on their websites, compensating employees for securities solicitations, and holding investor funds or securities." The proposed rules under review are (i) funding portal rules 100, 110, 200, 300, 800, 900 and 1200, (ii) related forms, and (iii) FINRA Rule 4518 ("Notification to FINRA in Connection with the JOBS Act").