On this episode of the Capital Insight podcast, Jenny and Michelle discuss recent important developments in crowdfunding regulations in light of significant fines issued against two major fundraising portals.
Recently, the Financial Industry Regulatory Authority (FINRA) fined two funding portals a combined total of $1.75 million, including a $1.4 million fine to WeFunder, the largest Regulation Crowdfunding portal. The action provides important insights into how FINRA will evaluate compliance with the intense investment crowdfunding regulations.
In this episode, Jenny and Michelle discuss what went wrong — from incorrectly managing campaigns to investment recommendations in marketing materials — and the impact this may have on the future of crowdfunding. As CEO of the crowdfunding platform Crowdfund Mainstreet, Michelle offers a unique perspective on the issue. “We have to stop alluding to this as a very simple, easy, fast way to raise money — crowdfunding is none of those things,” she says. “It takes a lot of work and effort. And in the end, it pays to do things by the book.”
Learn more about the FINRA action here.
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