Setting up an SEC-registered crowdfunding portal requires registering as a funding portal with the
SEC and becoming a member of FINRA. Key steps include filing Form Funding Portal (FP-NMA), paying application/membership fees, passing background checks, and complying with Regulation Crowdfunding rules, such as having1,575 for not timely reporting disclosure events.
Key Requirements to Setup a Funding Portal
- Registration: Register with the SEC as a funding portal by filing Form Funding Portal (FP-NMA).
- Membership: Become a member of a national securities association, specifically FINRA.
- Costs: Application fees often include
$2,700 for filing, plus fees for fingerprinting, background checks, and annual renewals.
- Compliance: You must adhere to Regulation Crowdfunding (Reg CF) rules, including “bad actor” disqualification checks.
- Operations: The portal must provide necessary disclosures,, , , , and implement mechanisms for investor education.
Process Overview
- Preparation: Prepare necessary documentation, including operating manuals, business plans, and compliance procedures.
- Submission: Submit Form FP-NMA to the SEC and FINRA.
- Approval: Wait for FINRA approval and membership confirmation.
- Launch: Begin facilitating offerings under Regulation CF.