Taylor English Attorneys Submit Comments to FINRA on Crowdfunding Regulations

August 17, 2012

Taylor English Attorneys Dianne L. Trenholm and Jonathan B. Wilson today submitted to FINRA comments in response to FINRA Regulatory Notice 12-34; Request for Comment on Regulation of Crowdfunding Activities. Crowdfunding – a new process in which small businesses and start-ups may soon be able to use Web-based “funding portals” to seek investors for private offerings of their securities -- was recently introduced to the public through the JOBS Act passed by Congress in April, 2012. Once the SEC and other relevant regulatory organizations adopt implementing regulations it may become possible for newly-formed “funding portals” to advertise through the Web opportunities for individual investors to invest in privately-held small businesses and start-ups. Taylor English represents small businesses, start-ups, investors and securities professionals in securities transactions. Many industry analysts believe that crowdfunding has the potential to serve as a new source of start-up capital for small businesses and new ventures. In their comment letter to FINRA – the self-regulating organization that services as a primary regulator for broker-dealers and other licensed securities professionals – Dianne Trenholm and Jonathan Wilson have offered their comments on how FINRA should adopt regulations that ensure market integrity and investor protection while also serving the legislative intent behind the JOBS Act of making capital available to small businesses and new ventures.

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