Written Supervisory Procedures Checklist for Funding Portals

Overview

This Written Supervisory Procedures Checklist (“WSP Checklist”) outlines selected key topics as a reference tool to assist funding portal members (“FP members”) in fulfilling their compliance obligations.

Most of the key requirements that apply to funding portal members are set forth under Regulation Crowdfunding, which the Securities and Exchange Commission (“SEC” or “Commission”) adopted pursuant to the JOBS Act of 2012. Throughout this Checklist, we refer to “Regulation Crowdfunding” as “Reg CF” for short. Funding portal members are also subject to the FINRA Funding Portal Rules, referred to as the “FP Rules.” This tool is intended to be a short summary of relevant obligations and FPs should review Reg CF and FP Rules for all relevant details to review their compliance programs.

Please note that some of the rules referenced below apply by their terms to “intermediaries.”  An intermediary is either an FP member or a broker-dealer that engages in Regulation Crowdfunding activity and, as such, the requirement applies to both types of entities.

FINRA Compliance Tools Disclaimer

This optional tool is provided to assist member firms in fulfilling their regulatory obligations. This tool is provided as a starting point and you must tailor this tool to reflect the size and needs of your firm. Using this tool does not guarantee compliance with or create any safe harbor with respect to FINRA rules, the federal securities laws or state laws, or other applicable federal or state regulatory requirements. This tool does not create any new legal or regulatory obligations for firms or other entities.

Updates

This tool was last updated on February 13, 2023. This tool does not reflect any regulatory changes since that date. FINRA periodically reviews and update these tools. FINRA reminds member firms to stay apprised of new or amended laws, rules and regulations, and update their WSPs and compliance programs on an ongoing basis.

Member firms seeking additional guidance on certain regulatory obligations should review the Funding Portal Topic Page and any relevant FINRA Topic Pages.

Staff Contact(s)

FINRA's Office of General Counsel (OGC) staff provides broker-dealers, attorneys, registered representatives, investors and other interested parties with interpretative guidance relating to FINRA’s rules. Please see Interpreting the Rules for more information.

OGC staff contacts:

Adam Arkel
FINRA, OGC
1700 K Street, NW
Washington, DC 20006
(202) 728-8000