Category Archives: Securities & FinTech

Disqualification of Crowdfunding Intermediaries

The Securities and Exchange Commission (SEC) may refuse or, after due notice and hearing, suspend or revoke the authority of crowdfunding intermediaries. The Crowdfunding Rules provides that operation with respect to crowdfunding of investment houses, brokers and funding portal may be refused, or any registration granted may be revoked, suspended, or limitations placed thereon, by the SEC. 

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Prudential Requirements for Crowdfunding (CF) Intermediaries

A crowdfunding intermediary shall, at all times, maintain a capital amount which exceeds its annual operational expenditure which constitutes all expenses and losses that arise in the crowdfunding intermediary’s normal course of business in a 12-month accounting period. This expenditure- and risk- based minimum capital requirement is provided under the Rules and Regulations Governing Crowdfunding (CF).

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