FINRA Notice 16-07


January, 2016

The SEC approved new FINRA Rule 4518 as part of FINRA’s proposal to establish the new Funding Portal Rules and related forms.1 This Notice provides further guidance on new Rule 4518, which applies to registered broker-dealer members of FINRA that contemplate acting as intermediaries in transactions involving the offer or sale of securities pursuant to the crowdfunding provisions of Title III of the JOBS Act2 and the SEC’s Regulation Crowdfunding.3 Under the new rule, registered broker-dealer members must provide notification to FINRA, as specified in the rule and as discussed further in this Notice, prior to engaging in such activities. FINRA Rule 4518 will become effective on January 29, 2016.

See the attached pdf, for the full text:

pdf FINRA_Notice_16-07.pdf