FINRA Extends Review Period of Proposed Funding Portal Rules
Commentary by Steven Lofchie
FINRA extended the review period for its proposed funding portal rules to January 26, 2016. 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").
Commentary
Though these proposed rules are arguably less burdensome than the original proposed rules, it is doubtful that anyone will want to operate under them, no matter how long the SEC may take to review them.