CrowdCheck Blog

We keep hearing this question.  To be honest, it’s not clear why a crowdfunding issuer would want to have to deal with the recordkeeping for what could be thousands of investors (and even if the issuer uses a Reg CF SPV, that itself is an issuer whose many shareholders have to be wrangled). But are you absolutely required to have one? Let’s look first at Rule 301 of Regulation CF. This (titled “Measures to reduce risk of fraud”) requires that the intermediary in a Reg CF offering have a…

We keep hearing this question.  To be honest, it’s not clear why a crowdfunding issuer would want to have to deal with the recordkeeping for what could be thousands of investors (and even if the issuer uses a Reg CF SPV, that itself is an issuer whose many shareholders have to be wrangled). But are you absolutely required to have one? Let’s look first at Rule 301 of Regulation CF. This (titled “Measures to reduce risk of fraud”) requires that the intermediary in a Reg CF offering have a…

We keep hearing this question.  To be honest, it’s not clear why a crowdfunding issuer would want to have to deal with the recordkeeping for what could be thousands of investors (and even if the issuer uses a Reg CF SPV, that itself is an issuer whose many shareholders have to be wrangled). But are you absolutely required to have one? Let’s look first at Rule 301 of Regulation CF. This (titled “Measures to reduce risk of fraud”) requires that the intermediary in a Reg CF offering have a…

We keep hearing this question.  To be honest, it’s not clear why a crowdfunding issuer would want to have to deal with the recordkeeping for what could be thousands of investors (and even if the issuer uses a Reg CF SPV, that itself is an issuer whose many shareholders have to be wrangled). But are you absolutely required to have one? Let’s look first at Rule 301 of Regulation CF. This (titled “Measures to reduce risk of fraud”) requires that the intermediary in a Reg CF offering have a…

We keep hearing this question.  To be honest, it’s not clear why a crowdfunding issuer would want to have to deal with the recordkeeping for what could be thousands of investors (and even if the issuer uses a Reg CF SPV, that itself is an issuer whose many shareholders have to be wrangled). But are you absolutely required to have one? Let’s look first at Rule 301 of Regulation CF. This (titled “Measures to reduce risk of fraud”) requires that the intermediary in a Reg CF offering have a…

We keep hearing this question.  To be honest, it’s not clear why a crowdfunding issuer would want to have to deal with the recordkeeping for what could be thousands of investors (and even if the issuer uses a Reg CF SPV, that itself is an issuer whose many shareholders have to be wrangled). But are you absolutely required to have one? Let’s look first at Rule 301 of Regulation CF. This (titled “Measures to reduce risk of fraud”) requires that the intermediary in a Reg CF offering have a…

We keep hearing this question.  To be honest, it’s not clear why a crowdfunding issuer would want to have to deal with the recordkeeping for what could be thousands of investors (and even if the issuer uses a Reg CF SPV, that itself is an issuer whose many shareholders have to be wrangled). But are you absolutely required to have one? Let’s look first at Rule 301 of Regulation CF. This (titled “Measures to reduce risk of fraud”) requires that the intermediary in a Reg CF offering have a…

We are often asked by companies, “why can’t I do [fill in the blank]? I see this other company doing it.” Our response has always been that just because those other companies have not yet been subject to enforcement, doesn’t mean that there will not be an issue later on. The time and effort to build a case, and often reaching a settlement, means that public knowledge of enforcement lags.  The SEC has recently made this clear in regards to non-compliant offers and sales under Reg A. On May 16,…

We are often asked by companies, “why can’t I do [fill in the blank]? I see this other company doing it.” Our response has always been that just because those other companies have not yet been subject to enforcement, doesn’t mean that there will not be an issue later on. The time and effort to build a case, and often reaching a settlement, means that public knowledge of enforcement lags.  The SEC has recently made this clear in regards to non-compliant offers and sales under Reg A. On May 16,…

We are often asked by companies, “why can’t I do [fill in the blank]? I see this other company doing it.” Our response has always been that just because those other companies have not yet been subject to enforcement, doesn’t mean that there will not be an issue later on. The time and effort to build a case, and often reaching a settlement, means that public knowledge of enforcement lags.  The SEC has recently made this clear in regards to non-compliant offers and sales under Reg A. On May 16,…