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Transcript of Our Third Crowdfunding Live Chat - SEC Meeting & More

Transcript of Our Third Crowdfunding Live Chat - SEC Meeting & More

Our weekly crowdfunding live chats are becoming one of the hottest tickets around as the gears start turning to put the new investing framework in place. Our third live event was held this past Monday, just a few days after members of the Crowdfunding Intermediary Regulatory Association met with officials from FINRA and the SEC. It's worth checking out the exclusive coverage of those meetings on from myself and also from one of the people that was in the room.

Naturally there was lots of talk about the SEC and the regulatory process during this most recent live chat. Please peruse the transcript below for some extra details not covered in the aforementioned stories There's also lots of great background and information on what exactly is in the JOBS Act to be found in the transcripts of our first and second live chats as well.


Crowdfunding Live Chat #3
Monday, April 23rd, 2012

Moderator: Candace Klein, SoMoLend founder, CAPS Council and CFIRA member

Candace Klein : "Hello everyone! Carl is unable to facilitate today's discussion, so I will do so in his place. Welcome!"
George Morris : Good morning all - another exciting Crowdfunding progress day!
Darin Gordon : Hello
Rafael Chaves Lopes : Hello, everyone.
Darin Gordon : hello
Candace Klein : Hello everyone! Carl Esposti cannot join today, so I will facilitate discussion in his absence. Welcome!
Arthur Hardy-Doubleday : Hello
Charles Davidson : Hello all
EcoEinstein : Hi, Peter Einstein, Founder
Kevin Williams : Good day from Michigan
Candace Klein : Please go ahead and announce yourselves, and we will get started briefly
Rafael Chaves Lopes : Hello, everyone.
Darin Gordon : my first question-- are there meeting minutes that summarize your discussions with the SEC/FINRA last week?
Arthur Hardy-Doubleday : Arthur Hardy-Doubleday from Conception Fund
Vincent Molinari : Greetings
EcoEinstein : H, Peter Einstein, Founder CrowdFunding4Good
Freeman White : Hello
Rafael Chaves Lopes : Hello, everyone.
Kevin Berg Grell : Good morning everyone. Kevin Berg Grell, CAPS Program Director,
Darin Gordon : entrepreneur, worked in financial services for the last 9 years
LeoBullock : Greetings
Charles Davidson : Charles Davidson, Incorporating Services, LTD. providers of entity formation and management services
Eric Mack : hi everybody, i'm one of the editors here at welcome!!
Rafael Chaves Lopes : Rafael Chaves Lopes from RCL Partners
Darin Gordon : my first question-- are there meeting minutes that summarize your ­discussio­ns with the SEC/FINRA last week?
douglas ellenoff : Doug Ellenoff Ellenoff Grossman & Schole
Kevin Williams : Good afternoon from Michigan. Would like to hear of info re the NY conference
Darin Gordon : dara albright : Hi everyone - Dara Albright here
Candace Klein : @Darin, I believe that an article is being posted today with the general comments from the meeting
dara albright : Hi Everyone - Dara Albright from NowStreet and TSL here
Vincent Molinari : Candace are you taking this?
Brad McGee : Brad McGee, iCrowd.
Darin Gordon : thx Candace
Candace Klein : But I will also be happy to post the comments during today's chat
Rafael Chaves Lopes : we share the same background, Darin... I worked for 10 years with investment management. Now I'm an entrepreneur as well
EcoEinstein : Hi Dara, Gr8 gathering in NYC!!!
Candace Klein : DJ Paul from set up a meeting with the SEC last Friday, and will be leading today's discussion
Arthur Hardy-Doubleday : Happy Sao Jorge Day Rafael
douglas ellenoff : Candace-- I have provided notes if you would like me to share them with the group after we have made them more presentable
Eric Mack : I posted a story on the front page of earlier about the meetings
David Paul : Hello, guys, this is D.J. Paul
George Morris : George Morris Director of a Pulbilc BDC / Business Development Company and FINRA Broker Dealer with strong interest in Crowdfunding.
Darin Gordon : Have you received a large amount of interest for joining your association? I've volunteered to help and have not heard from anyone
David Paul : DJ Paul here. Hi guys.
Candace Klein : Doug, I would welcome that. We can post them on this site after today's call
Rafael Chaves Lopes : Hi David
George Morris : Need some contacts for networking.
Candace Klein : @Darin, thank you for your interest! Email me after today's chat at
Darin Gordon : @Rafael my email is darinc@gmail -- would love to connect w/ you
Ruth E. Hedges : Hi Everyone Ruth Hedges here from, CAPs and CFIRA
Candace Klein : DJ, would you mind givng an overview of the meeting from last week?
Freeman White : Hello from, developer of white label crowdfunding platforms.
Kevin Berg Grell : @Darin; We are collecting all the registrations -- an overwhelming amount -- and will give you feedback shortly (possibly during this week).
George Morris : my email is
David Paul : Sure. We met with the SEC for about an hour an a half.
douglas ellenoff : George, please reach out to as one possible contact
David Paul : Our group was about 13-14.
David Paul : And the SEC had 20+ over the course of the time
Brad McGee : Hello. Brad McGee from iCrowd.
Rafael Chaves Lopes : @Darin, will get in touch as soon as we finish here.
David Paul : The SEC had 3 divisions presents: Trading and Markets, Corp. Fin. and Compliance.
Kevin Berg Grell : @Darin; We will respond to the overwhelming amount of registrations shortly – possible during this week.
Ruth E. Hedges : Hi Everyone Ruth Hedges here from ­Fundingro­­, CAPs and CFIRA
EcoEinstein : Hi Ruth!
Rafael Chaves Lopes : Hi Ruth
George Morris : i'm back
Daniel Fountenberry : According to the new law will 'Funding Portals' be able to list investment opportunities and also facilitate investments, or just list them
Candace Klein : DJ, will you cover the main topics discussed?
Darin Gordon : @Kevin caught you sleeping! :) don't pass on my offer
David Paul : The purpose of the meeting was both introductory as well as an attempt to set the agenda for discussion of the relevant issues and concerns
Ruth E. Hedges : Hi Peter , Hi Rafael
Candace Klein : DJ, will you cover the main topics discussed?
David Paul : which need to be worked through over the next several months
Brian Tsuchiya : Hello, I am working with Berkeley Geddes who was elected interim lead for establishing the global crowdfunding trade association
Rafael Chaves Lopes : @DJ Paul, what were their maisn concerns regarding CF?
Rafael Chaves Lopes : *main
Kevin Williams : Test
EarlyShares : Hello everyone!
George Morris : Any change in timing to implement?
David Paul : Main topics were as follows:
Darin Gordon : what is the GOP's position on crowdfunding? I'm interested in the political risks as the SEC will sway to whoever is in control
Candace Klein : We were asked by the SEC to make clear that no one should be operating crowdfunding operations prior to the 270 rulemaking period.
Kevin Williams : Hello from Michigan.
Brian Tsuchiya : Hello
LeoBullock : Hello from Panama City Beach, FL
EarlyShares : Nice to see some faces from the last conference in NY
Candace Klein : Both the industry reps and regulators talked about working towards common goals of transparency and protections for issuers and investors
George Morris : Protecting' the politicians may be thought of..
Brian Tsuchiya : I am working with Berkeley Geddes who was elected to lead the efforts to launch the global crowdfunding trade association
Candace Klein : The SEC is looking at possible requirements to use 3rd-party escrow rather than allowing platforms to hold cash as some do now
Kevin Williams : David Paul, I had a conversation with SEC also, were you in NY or was this a mtg in DC?
Christine Landon : @David...Main Topics?
David Paul : Main topics: Investor Protections, Infrastructure and Operations of portals/platforms and Ongoing Governance of the Industry
Daniel Fountenberry : @EarlyShares - under the new law, will 'Funding Portals' be able to facilitate transactions or just list them?
George Morris : Escrow are not a big problem
David Paul : The SEC meeting was in DC
EcoEinstein : Any chance of them providing standardized language to be posted on platform?
Brad McGee : @Candace - but the legislation requires this anyway, so what's the issue?
Candace Klein : It is still unclear what portals will be permitted to facilitate, without triggering investment advice
Darin Gordon : @David Paul what is best way to contact you
Candace Klein : @Brad, Many portals are currently holding their own cash.
David Paul : Darin, the GOP is supportive of CF as the initial bill introduced in the house was written by a Republican named McHenry.
EarlyShares : we are still not sure on how a funding platform can be involved in the transaction and shareholder management.
Brad McGee : @Candace - that's a very big issue (advice). Is user-generated content considered advice, for example?
Daniel Fountenberry : @David Paul could you organize a phone call where people could dial in and listen to you provide an update?
EcoEinstein : There's a big difference between Featuring vs Recommending a company
George Morris : Earning a commission without limits of licene has been a concen for BDs
EarlyShares : We are still not sure on how a funding platform will manage transactions and shareholder management
Charles Davidson : @George BDs?
Candace Klein : @Brad, this has not been determined yet. They welcome our comments
Brad McGee : The @Candace, that suggests the SEC as viewing their scope to extend beyond section4(6) offerings?
Vincent Molinari : I believe most of the central commission issues will be taken up by Finra
Candace Klein : Comments can be made at
David Paul : Daniel, yes, we could arrange a phone call at some point this week for an update.
Candace Klein : @Brad, it may be worthwhile to connect after today's chat to discuss this in more detail
Rafael Chaves Lopes : I believe each portal will do its own screening of willing issuers. And that's as far as the portal's advice extends to. Isn't it?
David Paul : BD=Broker/Dealer
Candace Klein : The issue of what will be considered 'investment advice' when it comes to screening and other measures taken by platforms,
Brad McGee : @Candace, I'm happy to connect.
Charles Davidson : @ David thanks sometimes get lost in the lettere
Charles Davidson : letters
Candace Klein : a topic that's come up frequently in our crowdfunding live chats, was also a topic of interest. What the SEC decides
Candace Klein : with regard to this topic will impact what services platforms will be allowed to provide and/or charge fees for.
David Paul : Charles, NP
Darin Gordon : any comments on FINRA's discussion?
Candace Klein : There was discussion of how and when a 21-day 'cooling off' period between intitial offerings and the beginning of actual sales will take
Candace Klein : place
Vincent Molinari : sure I will believe it went well
Richard Swart : Sorry to be late ..
EcoEinstein : There has to be a match between the things they will require platforms to do and the fees we can charge
Candace Klein : It seems likely that platforms will need to register with both FINRA and the SEC.
David Paul : Darin, there will be a governing body and it may be FINRA. The discussion is ongoing. We met with FINRA as well.
Brad McGee : Can someone comment on the role of the proposed SRO versus FINRA? Are we defaulting to FINRA now?
Vincent Molinari : Finra is working on CF as it apllies to BD's
Vincent Molinari : Finra would like to govern the portals
Arthur Hardy-Doubleday : @Brad I second that. Thank you for raising that
EarlyShares : if the options are too limited for funding platforms some might have to go in the BD direction (expensive..)
Candace Klein : @Brad, the SEC will decide who the ultimate regulatory authority will be. While the crowdfunding industry will likely
Richard Swart : The SEC made it quite clear they beleive it is not possible for us to become an SRO due to the need for enforcement, investigations, etc
Vincent Molinari : They were receptive and cooperative in understanding concerns of CF participants
Brad McGee : @Candace - is this really a cooling off period? It seems to me there will be >21 days between most offerings and closings anyway, so that's
David Paul : Brad, we are not so much as defaulting to FINRA as embracing the need to utilize the infrastructure of an extant Governing Body, like FINRA
Candace Klein : require autonomy, FINRA already has much of the back-office set up, which is something that is heavily being considered
Vincent Molinari : There is concept of BD lite w Finra. Still would require membership, but less requirements and cost
Darin Gordon : having had my own work through an official FINRA approval process, I cannot emphasize enough the importance of first draft
Brad McGee : I agree that FINRA would make sense because of the infrastructure.
Brian Tsuchiya : How does FINRA feel about this?
George Morris : Sorry, I was 'knocked' off line: BD is Finra/SEC Broker Dealer
Candace Klein : @Brad, the question tied to the 21-day period is more: what can happen during that time? Rescission? Oversubscription?
Brad McGee : And I like the idea of a 'BD light' designation.
Rafael Chaves Lopes : @Candance - And would be in for FINRA if she decides to 'lend' it's back-office structure to CF?
douglas ellenoff : In many ways, FINRA will end up being the primary regulator and the one that you will have to spend the most time with
George Morris : Frian: nervous - very
Vincent Molinari : Brian Finra appears to be engaging and a good potential fit
Brad McGee : Thank you for the 21-day comment @Candace. I'll take any further discussion off-line.
David Paul : Darin, can you expand on what you mean by 'First Draft' for us?
Bob Thibodeau : Does this have an audio component?
Candace Klein : @Rafael, there are clearly concerns, but SEC made it clear that this is a path they are heavily considering.
Kevin Berg Grell : Sorry Bob; not yet :)
Vincent Molinari : The other SRo choices maybe NFA, but still early. The SEC is clearly focused oin FInra as SRo
George Morris : I agree that SEC will probably use FINRA to suprevise activities like in other investment banking
Brad McGee : No @Bob, but I think it should be considered for the future.
Brian Tsuchiya : How can we as an industry help FINRA get more comfortable with CFI?
Candace Klein : @Bob, we are looking to set up webinars in the coming week or two, but are limited today to text chat
Kevin Berg Grell : Sorry Bob; not yet :)
Vincent Molinari : Bob wish it did!
Bob Thibodeau : No worries.
George Morris : Brad: yes
Candace Klein : The SEC made clear that it is interested in means of verifying and vetting not only platforms, but individual investors as well.
Vincent Molinari : Brian having a unified voice CF vto Finra is essential
Candace Klein : The possibility of a 'do not invest list' was also mentioned.
Richard Swart : @brian, they are very open to meetings, Vince and DJ already are meeting with FINRA and the SEC wants us to continue working with them
Jerry Levin : Hi there. Are these live chats archived anywhere for review later? This is great information. Thanks for providing the forum.
Rafael Chaves Lopes : @Candance - Yes, but my main concern is that CF ends up in the hands of the same old Wall Street sharks
Bob Thibodeau : With the financial side of these transactions already under Finra and Commercial banking regulatory regimes, why is there a need for an SRO?
douglas ellenoff : our bd regulatory practice is already in full discussions with FINRA about how to proceed
George Morris : Candace: every individual investment banker is licensed and supervised
Darin Gordon : @Candace any regulatory oversight of vetting investors will destroy this market
EcoEinstein : Vetting small investors? That's crazy!
EarlyShares : How can you stop an individual investing 80$ in a startup?
Candace Klein : All chat transcripts are available on this site. Kevin, where can they be found?
Michael Laine : Candace - please elaborate on the 'do not invest list' and the SEC vetting individual investors.
Candace Klein : I'm simply letting the group know what we were told by the SEC. They want your comments.
Charles Davidson : Actually the vetting process should be very simple
George Morris : EcoEinstein - tell that to FINRA and other BDs
Ruth E. Hedges : I agree peter
Vincent Molinari : The great thing is both finra and sec are engaged and cooperative at this point, we need to continue with that momentum
Charles Davidson : as it should be a variation of the standard homeland security vetting required for banking purposes
Brian Tsuchiya : @Bob, we are tiny as an indsutry compared to what FINRA manages now, their revenues are around $655M, we want the opportunity have a voice
Charles Davidson : We procees those all the time and they only take a few minutes each
EcoEinstein : Charles, please explain.
Candace Klein : Act Title I&ac
George Morris : Please remember the SEC main role in raising money is 'FULL DISCLOSURE'
Brian Tsuchiya : and say in how we are regulatated it matters to us and the entrepreneurs and investors we serve
Kevin Berg Grell : @Candace; Transcipts will be prepared and provided by our Editorial Team.
David Paul : I do not think it will too onerous to vet investors. Not much more than opening a bank account, for example.
EarlyShares : Here is the comment form for the SEC:
Bob Thibodeau : Im in the industry too, but there has never been an SRO established at this very early stage in a markets development
Kevin Williams : FINRA may have a so called infrastructure set up but I think there should be a seperate organization.
EcoEinstein : maybe this could done like the terms and conditions pages on websites?
Candace Klein : Act Title I&ac
Candace Klein : Act Title I&ac
douglas ellenoff : actually the sec has many different charters including capital formation and investor protection
Rafael Chaves Lopes : @Kevin - I agree with you
Vincent Molinari : @ Bob 100% correct. Expensive time consuming and capital requirements are huge
Brian Tsuchiya : @Bob, you are correct and it would not be sometiing we could do now the capital requirements alone are onerous
Candace Klein : Act Title I&ac
Kevin Williams : FINRA as a part of the large WS establishment may seek to limit the abilities of CF
Charles Davidson : @ECO sorry got bumped
Daniel Fountenberry : @Candace - Do u c opportunities under the law to C-Fund specific projects like real estate deals or movies rather than full businesses?
Brian Tsuchiya : We are keeping an open dialogue and providing options
Alejandro Cremades : Hi everyone. Alejandro Cremades from Rock The Post. Apologies for the delay. Had some technical issues
EcoEinstein : @Kevein. Totally agree!
Adam Mimeles : @Bob, point would be to try to stay ahead of SEC and FINRA regs to better control process (if possible)
George Morris : NASSA = State Regulators have been removed and are interested in FAIRNESS. We should be concerned since they are politically connected .
Rafael Chaves Lopes : CF is a new capital market, and with the same old regulators taking over it, it would be just a matter of time before WS swallows it
Vincent Molinari : we must be realistic in my opinion that we cant launch a true sro we must have a seat @ the table and educate and have an active voice
Candace Klein : @Daniel, I believe that every fundraiser will need a corporate entity, but projects are not out of question
David Paul : Daniel, yes, those types of projects would be appropriate for CF
Brad McGee : Is the individual investor vetting related to the Patriot Act and 'know your customer' issues, do you know?
Candace Klein : Act Title I&ac
Charles Davidson : Every individual who opens a bank account or forms an entity must be vetted. The process is so standardized that my Client Service Reps can
Brian Tsuchiya : @Daniel, most anything can get funded if the issuer was enough social capital and a solid enough investment opportunity
Bob Thibodeau : Even fully potentiated, CFI represents annual volume less than an hours trading in capital markets. I dont think they want to constrain it,
Charles Davidson : @ Brad, I would surmize yes
Darin Gordon : @Rafael depends on how legitimate the market becomes
douglas ellenoff : yes, the sec was inquiring about the Know Your Customer related issues, as will FINRA
Richard Swart : @brad, they will want OFAC vetting - and more. They want full information on the identities of all parties, and how they were verified
Candace Klein : There was also discussion at the FINRA meeting of whether or not it will be possible for credit cards to be used on crowdfunding platforms.
David Paul : Brad, there is a concern from the SEC that we know the identity of who is actually investing, yes
Charles Davidson : Sorry was bumped off chat
George Morris : Being involved with Finra and the SEC giving them solutions no threats to public protection is the answer
Vincent Molinari : @brad yes concerns of KYC limited aml etc..
Darin Gordon : @Richard do you have more information on what they are looking for
Charles Davidson : @eco This is a very easy process
Ruth E. Hedges : @ Daniel And meets tthe SEC reporting requirements
Candace Klein : Finally, the SEC says it would like to see more written comments from the public.
Brian Tsuchiya : I have a meeting, see many of you in May in San Fran
Vincent Molinari : @ Brad fully agree
Charles Davidson : My company processes dozens a day, for the purposes of entity formation etc.
EarlyShares : @Candace, what was their answer about credit cards? (paypal?)
Vincent Molinari : Thanks Brian
Candace Klein : Act Title I&ac
Charles Davidson : and yes it is related to homeland security
Ruth E. Hedges : looking forward to it Brian !
Brian Tsuchiya : For those that attended the SEC/FINRA meetings thank you all and loved getting to know you guys in NY
Candace Klein : They honeslty hadn't thought of it until we mentioned it.
George Morris : The answer used by the SEC has been 'accreditation' at some level but that keeps out many
Rafael Chaves Lopes : @Darin - Its legit. No doubt there. The thing is, regulation towards CF should come in a transparency and FairTrade model
Michael Laine : @candace - Where would we - the public - make these comments for the SEC to review?
Rafael Chaves Lopes : not the one we saw going on WS
Darin Gordon : @Raf looking forward to speaking with you on that
Candace Klein : Dara, did you want to give an update on upcoming events?
Michael Laine : @candace - where would 'the public' go to makes comments to the SEC?
Rafael Chaves Lopes : @Darin - Yep. We'll do.
Candace Klein : @Michael: Act
Bob Thibodeau : They had thought about the use of credit cards, and because it creates an implicit margin account (borrowed funds) it creates significant is
Vincent Molinari : Thanks everyone Have to jump to a meeting as well
Christine Landon : @Candace and @ES @ David Are there minutes from the SEC meetings? When will they be posted and where if so?
EarlyShares : Too much regulations will kill the CF model, as platforms we will do our best for investor protection.
Brad McGee : @Candace. Getting an overview of the types of issues raised with the SEC will help provide input to make comments.
Bob Thibodeau : issues related to small investors being extended to purchase shares.
Kevin Williams : I would suggest a reporting requirement w/ oversight more so than a more heavily weighted vetting process.
Michael Laine : @candace - Link didn't work... Please try again.
Candace Klein : If you would like to join the discussions we are having with the SEC and FINRA, please do let us know:
Vincent Molinari : I think it is clear that CC use would not be permitted @ Bob is correct smacks right into RegT
Daniel Fountenberry : @Candace - There are a flood of 'funding portals' lining up (including people on this chat). How do we get accredited first?
George Morris : Early shares absolutley
EcoEinstein : How do they monitor investors investing on various platforms?
Candace Klein : @Michal, please just Google 'SEC JOBS Act Public Comment'
Darin Gordon : links not working
Rafael Chaves Lopes : Why doesn't the SEC get some background for these regulations on European models of CF? It seems to be working fine there.
Brad McGee : @Michael. You have to edit the link. In these chats, extra characters are added.
Vincent Molinari : @Eco that was a discussion_a challenge
Candace Klein : @Darin, which link?
Christine Landon : Are the minutes from the SEC meetings posted anywhere?
George Morris : Daniel: please contact
David Paul : ECO, there is discussion of a shared database, but the details have not been proposed yet
Brad McGee : The chat inserts dashes and spaces that you do not see on you screen.
Michael Laine : @candace - thanks. ;-)
George Morris : Yes the minutes - how do we get them?
Arthur Hardy-Doubleday : @candace I have filled out the contact form on that link before and never heard back
Candace Klein : They will be posted to this site after today's chat, thanks to Doug
Christine Landon : Thanks Doug!
Kevin Berg Grell : @Arthur H-D; We will respond to the overwhelming amount of registrations shortly – possible during this week.
Candace Klein : @Arthur, thank you for your patience! We will be reaching out next week to anyone who expressed interest
George Morris : Thanks Candace
Freeman White : @DJ, was the SEC or FINRA proposing to host the database?
Arthur Hardy-Doubleday : @Kevin and @Candace thank you
George Morris : Freeman: I hope not
Darin Gordon : have you considered conducting a Google+ hangout to enhance the community that you are building here?
Kevin Williams : @Raf, in talking with a Dep Dir at SEC he did state that they would look at some of the non-profit platforms for guidance
David Paul : @Freeman, it did not sound like the SEC would 'host' the database so much as monitor it. But again, up for discussion.
Candace Klein : @Darin, great idea! We will explore.
George Morris : David, I would bet they would monitor
Rafael Chaves Lopes : @Kevin - But there are equity-based platforms running great like crowd-cube. We already know that non-profit works. This whole discussion is
Rafael Chaves Lopes : on equity
Alejandro Cremades : @DJ, I would like to be included on the call if possible
Rafael Chaves Lopes : on equity
Bob Thibodeau : Many of these issues, like investor databases, lend themselves to industry utility market models like those used in established markets
Kevin Williams : David Paul would love to participate in the teleconf. All my email is
Freeman White : @DJ, so it sounds like the database would be coordinated by FINRA with our input and then monitored by SEC?
Candace Klein : Stay tuned for a follow up call in the coming week or so.
David Paul : As for FINRA maintaining database, again, preliminary discussions about that or whether it would be done 3rd party.
Candace Klein : Please do sign up so we can contact you with call-in info:
Alejandro Cremades : @DJ, mine is
Darin Gordon : @Bob yup!
David Paul : Freeman, that is the direction it sounds like it will head, yes
George Morris : Finra will just want to be very 'responsible'
EcoEinstein :
David Paul : Alejandro, thanks.
EcoEinstein : I'd like to be on the call too:
Darin Gordon : what do you think of the handbook that was distributed at last Wednesday's event?
Daniel Fountenberry : @David? Database? For what purpose? please explain (in 200 characters or less)
Kevin Williams : @raf SEC is probably open to other platforms my conversation only went to those in existence in USt best practices may lead to int'l models
George Morris : Darin: is three a handbook available?
Candace Klein : @Darin, members of the industry have coalesced to form a statement of intent. All are welcome to sign it. We will have more info at next
Candace Klein : week's call
David Paul : @daniel, database of investors to make sure regs and laws are complied with
Alejandro Cremades : @DJ, I know this might be a difficult question... By when do we estimate that CF portals will be completely regulated and able to operate?
EarlyShares : @Darin, very nice handbook as well as the 7-pager
Candace Klein : @Alejandro, honestly, I expect that FINRA will still be working after January, 2013.
Charles Davidson : @Darin Is the handbook available online?
Darin Gordon : @EarlyShares that's a $900 handbook.. enjoy
Bob Thibodeau : where can one obtain the handbook and the 7 pager?
David Paul : @Alejandro, hard to say, but the Jan 1, 2013 date looks likely.
Kevin Williams : Is there a concern that if there is an Administration change CF will be stymied?
Michael Laine : @alejandro, For what it's worth I'm 'planning' on doing my CF April 2013... I GUESS all the details will be done then.
Daniel Fountenberry : @David - any indication of if the SEC/FINRA might cap the number of accredited portals for the Jan 2013 luanch?
David Paul : @Kevin, I don't think so. Support for CF is very bipartisan.
Alejandro Cremades : @Candace and @DJ, thanks for the response. However, after the SEC makes the regulations available we would be looking at FINRA?
Alejandro Cremades : So I guess that will be another waiting period for the funding portals...
David Paul : @Daniel, there was no discussion of capping the number of portals.
Candace Klein : @Alejandro, the SEC mentioned that FINRA will have to design their own rules, and are not held to the 270 period.
Brad McGee : Are there any followed up mtgs scheduled with either the SEC of FINRA?
George Morris : Finra can be a tough 'policeman'
David Paul : @Alejandro, yes, its possible that FINRA will be the Reg Body.
EcoEinstein : What about networks on special interest platforms linked under some larger umbrella site?
Darin Gordon : FINRA likes to have a permanent presence at the big banks
EcoEinstein : of not on
George Morris : Finra rules are dynabmic
Bob Thibodeau : @David, I think the word is likely that Finra will be the reg body
Arthur Hardy-Doubleday : dynabmic?
Rafael Chaves Lopes : In the SEC meeting, did anyone talked about NLCFA as the SRO for CF instead of FINRA?
Arthur Hardy-Doubleday : @George dynabmic?
Kevin Williams : @Candace so is FINRA on a parallell 270 day track so as not to delay CF any further???
George Morris : Congress must be groomed and informed as well as the regulators.
Rafael Chaves Lopes : In the SEC meeting, did anyone talked about NLCFA as the SRO for CF instead of FINRA?
EcoEinstein : Good point, George
George Morris : Finra adjusts to the current circustance. sort of dynamic
Bob Thibodeau : @Kevin, its not parallel, Finra has latitude to act either within the timeline or outside it
Rafael Chaves Lopes : Or even a partnership?
David Paul : @Kevin, no, FINRA is not bound by congresses 270 period
Daniel Fountenberry : @David, DJ, Candice - In addition to joining CIFRA, commenting to SEC, what specific help do you need?
Darin Gordon : groomed and informed' = campaign support
Kevin Berg Grell : Re-post: 'Bob Thibodeau where can one obtain the handbook and the 7 pager?'
Freeman White : The Leadership Group's discussions with SEC and FINRA were within hours of eachother. Both groups want to work with us.
Kevin Berg Grell : Re-post: 'Bob Thibodeau where can one obtain the handbook and the 7 pager?'
Alejandro Cremades : Many people are suggesting 2014 as the time where funding portals will be available to the public with SEC and FINRA regulations
George Morris : Mary Shapiro of SEC came from running FINRA
Freeman White : I think we'll see action in both organizations. No one knows if it will be synced, but they move at more or less the same speed.
Kevin Berg Grell : Re-post: 'Bob Thibodeau where can one obtain the handbook and the 7 pager?'
David Paul : @Daniel, the SEC specifically asked all of us to inform the public and our peers about what the timeline is, what is legal now, etc.
Freeman White : If anything gets delayed, it will likely be that FINRA will wait for SEC's rules to at least be proposed.
Rafael Chaves Lopes : I meant CFIRA, not NLCFA. Sorry.
Darin Gordon : some bugs in this chat software.. I've been booted several times
Kevin Williams : If SEC is going to give FINRA powers to regulate my ? is, will CF be ready for implementation for Jan 2013 or be pushed back?
Darin Gordon : this chat software has booted me several times
Daniel Fountenberry : @David - I get that. What other specific task, actions, research, etc do you need?
George Morris : Please remember: poitics, politics...
Charles Davidson : @Michael Laine after the chat session, could you shoot me an email, I have a question for you
Bob Thibodeau : its booting all of us
Kevin Berg Grell : @Darin G. Note taken. I'll look into it.
Charles Davidson : @michael Laine
Freeman White : I wouldn't hold your breath for either the SEC or FINRA to be done with their deliberations by 1/1/2013. It may happen, but...
David Paul : @Kevin, this is unknown at this time. But the more we comment, the quicker the process.
Freeman White : prepare for a longer timeline.
EcoEinstein : David, would the SEC go along with a network of special interest platforms linked under a approved umbrella portal?
Darin Gordon : regulators take months to review submissions on models that already meet an agreed on regulatory framework
David Paul : Eco, I am not entirely sure what you mean. Do you mean as opposed to being under FINRA or the like?
Darin Gordon : to what extent is Steve Case involved with the SRO managing this chat?
Alejandro Cremades : @DJ, I agree with you. We need to make some noise with the comments in order to speed up the process
George Morris : David: the Registered Investment Advisors compliance currently offer some insite.
EcoEinstein : No, David - I mean that the special interest platforms would essentially be affiliates of a fully approved site
Michael Laine : Here's the SEC request: 'SEC Seeks Public Comment Prior to JOBS Act Rulemaking':
Ruth E. Hedges : I agree this whole thing started with a lot of noise we can't stop now !
Darin Gordon : is anyone here in/around NYC and would like to catch up to talk about CF and such?
Richard Swart : My wife is a regulator. Making noise is less effective than well structured comments presented by industry organizations.
Ruth E. Hedges : ­http://ww­­/news/pre­ss/2012/2­­m
Michael Laine : @charles - sure I'm
David Paul : Eco, yes, that is possible, once accredation for sites is established.
Richard Swart : So, how about a strong voice with lots of support!
Charles Davidson : @Michael got it
EcoEinstein : This way, costs for lawyers, infrastructure etc could be amortized
Freeman White : @Einstein, it is likely that each platform will need to have it's own registration, if they operate as a separate site.
Ruth E. Hedges : They are requesting comments
EcoEinstein : David, maybe that's a way for us to go?
George Morris : David: the accredidation process for platforms is critical
Freeman White : The limitations on affiliate schemes would limit site to site interactions.
David Paul : Eco, yes, that is possible, as long as all the 'back office/compliance' is handled by the primary portal.
Kevin Williams : We need some new thinkers not those made up from the board of governors of FINRA etc
Bob Thibodeau : @freeeman can you drop me a line after this?
EcoEinstein : David, EXACTLY! What about Freeman's comment?
David Paul : Freeman is right. But again, the process is developing. So ECO, you should send comments to this effect to the SEC, for example.
Ruth E. Hedges : i agree KW
Rafael Chaves Lopes : @Kevin - I agree. Maybe a partnership can be done to use FINRA's infrastructure, but i don't think it should be placed entirely on it's hand
Darin Gordon : what are some high level thoughts about what would constitute a BD-light ?
Kevin Berg Grell : If your question hasn’t been addressed once the Live Chat is concluded, please send it to: and I will accommodate it
Darin Gordon : what are some high level thoughts about what would constitute a BD-light ?
Arthur Hardy-Doubleday : @everyone I think its too early to tell what is going to sounds like SEC is asking for public comment which for now may be the
Kevin Berg Grell : Our time is unfortunately up...
Arthur Hardy-Doubleday : best way of influencing the process
David Paul : Ok, guys, we have to wrap this up.
Bob Thibodeau : Kevin, can you provide a list of attendees and affiliations to all the other participants?
George Morris : Darin: i beleive there is a FINRA 76 license fro investment banking only as an example
David Paul : We will be back next Monday. Please submit your written comments.
EcoEinstein : Maybe we should have 2 levels of platforms -- with the fully accredited portals the back offices 4 marketing sites?
Darin Gordon : @George thx
Kevin Berg Grell : If you wish to get notice on the next LiveChat please send me an e-mail at:
George Morris : Thanks
Darin Gordon : @George whats your contact
Kevin Berg Grell : @Bob; I am working on it :)
David Paul : And please post your email here so it will be in the transcript available as well.
EcoEinstein : Thanks everyone! I can be reached at
Charles Davidson : Charles Davidson, Vice President, Incorporating Services, Ltd.
EarlyShares : Thanks a lot, we will be posting news updates on our twitter and FB page.
EcoEinstein : David, how do we reach you?
Alejandro Cremades : Thanks everyone! Have a great week. My email is and I am the CEO and Co-Founder at Rock The Post
Darin Gordon : contact me @
Rafael Chaves Lopes : Thanks all. My contact is I'm the Founder of RCL Partners VC in Rio de Janeiro, Brazil.
Bob Thibodeau :, CEO
Freeman White : The best way to learn more about us and to reach me is through
EarlyShares : Thanks! We will try to post updates on our twitter and FB page, contact us at
Darin Gordon : george is that you from boulder
EarlyShares :
George Morris : Contac:
Freeman White :, earlier dash was inserted by chat function
Ruth E. Hedges : It's been a great CHAT.
George Morris : Darn: what did I do in boulder
David Paul : you can reach me at
Huey Freeman : what's the best web hosting service for crowdfunding sites?

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  • Guest karl hensel May 23, 2012 06:37 pm GMT

    Ilegal as hell. Equity crowd funding. The SEC has not registered any funding portals what is early shares? Equity crowd funding. They arer operating ouside the law. I do not care if they have a relationship with former SEC big wig who now owns and operates whatever. It is a prime example of insider action. It makes me sick!

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