The New Intermediary on the Block: Funding Portals under the CROWDFUND Act

UC Davis Business Law Journal, Vol. 13, p. 177 (2013)

University of Tennessee Legal Studies Research Paper No. 219

30 Pages Posted: 13 Jul 2013 Last revised: 1 Jun 2014

Date Written: June 18, 2013

Abstract

The CROWDFUND Act, part of the JOBS Act signed into law in the United States in April 2012, provides for a new registered securities intermediary known as a funding portal. Funding portals or registered brokers must participate in crowdfunded offerings of securities conducted in accordance with the new federal offering registration exemption created in the CROWDFUND Act. Although regulations are forthcoming that will further illuminate the structure and function of funding portals, the CROWDFUND Act itself offers some insights into the role of funding portals in securities crowdfunding and allows for preliminary observations about legal issues inherent in funding portal status. This paper makes those observations and highlights areas of potential regulatory concern after labeling funding portals using existing terminology and locating funding portals in recognized taxonomies of securities intermediaries.

Keywords: crowdfunding, intermediary, broker, funding portal

JEL Classification: G24, G28, G30, G38, K22, L14, M13, N20

Suggested Citation

Heminway, Joan MacLeod, The New Intermediary on the Block: Funding Portals under the CROWDFUND Act (June 18, 2013). UC Davis Business Law Journal, Vol. 13, p. 177 (2013); University of Tennessee Legal Studies Research Paper No. 219. Available at SSRN: https://ssrn.com/abstract=2293248

Joan MacLeod Heminway (Contact Author)

University of Tennessee College of Law ( email )

1505 West Cumberland Avenue
Knoxville, TN 37996
United States
865-974-3813 (Phone)
865-974-0681 (Fax)

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