FINRA Issues Notices Describing Fund Portal Rules (FINRA Reg. Notices 16-06 and 16-07)

FINRA issued two regulatory notices regarding its Funding Portal Rules; the notices provide background as to why the rules were adopted and guidance as to how to comply.

The newly adopted rules are Section 15 of Schedule A to the FINRA By-Laws that govern fees for funding portals; and (ii) Funding Portal Rules 100, 110, 200, 300, 800, 900 and 1200 (collectively, the "Funding Portal Rules"), related forms and FINRA Rule 4518.

The FINRA Funding Portal Rules and FINRA Rule 4518 will be effective on January 29, 2016, which aligns with the effective date of the SEC registration rules under Regulation Crowdfunding. FINRA reminded broker-dealer members that the effective date for Regulation Crowdfunding (other than the registration requirements) is May 16, 2016.

Comments on whether the rule change, as modified by Amendment No. 1, is consistent with the JOBS Act must be submitted by February 18, 2016.