While the JOBS Act has created an enormous opportunity, the world can seem like an impossibly regulated place for those operating a portal or raising money for a business. FundAmerica is a leading FinTech provider, here to minimize your risks and costs associated with equity and debt crowdfunding.
FundAmerica provides critical back office services for your portal and/or for issuers who are engaging in technology-driven fundraising by selling equity and debt securities to investors pursuant to 506(b), 506(c) (aka Title II of the JOBS Act) - and, once rules are approved, 4(a)(6) (aka Title III of the JOBS Act) offerings.
FundAmerica delivers the technology and compliance you need in the services below, either selectively or as a package, to handle critical back-office functions and manage regulatory exposure.
Lawyers, accountants, advisers and other professionals who are assisting businesses who are conducting securities offerings pursuant to 506(c) and other exemptions continue to run the risk of both federal and state regulatory exposure for various activities. FundAmerica provides you with the following automated tools to help facilitate offerings and protect issuers and their advisers with critical back-office support to minimize the risk of legal action from missteps.
SEC Rule 15c2-4 requires that funds raised in private securities offerings be held in bank escrow until funding contingencies occur. We ensure compliance with regulations while keeping costs under control. For equity and debt offerings from $50,000 – $50,000,000! 506(b), 506(c), Reg A, and more...
Federal regulations require businesses to know their investors well enough to ensure that, when raising funds, they are not selling securities to barred persons. And those who assist in the selling of the securities must take reasonable due diligence steps to ensure that the issuer and its associated persons (officers, directors and 20%+ shareholders) and in good standing and not subject to any regulatory disqualifications.
The securities may be exempt from federal regulations, but the act of selling those securities to state residents may not be. To avoid potential issues with state securities regulators, and the negative consequences of their actions, securities should only be sold to residents through an appropriately registered broker-dealer. This ensures compliance with both state and federal regulations for the sale of securities, KYC (“Know Your Customer”) rules, and investor protection.
Effortlessly send investor payments! Including interest, revenue-share, principal, preferred distributions, profit sharing, dividends, royalties, and anything else. Fully integrated with our IRM service to track who gets paid what and to keep permanent records for all payments.
Let us help jump start the process of creating and maintaining Written Supervisory Procedures with a set that you can modify and incorporate into your firms overall procedures. PLUS we include a comprehensive Compliance and Operations Manual for internal use for managing 506(c) business and in preparing for future 4(a)(6) crowdfunding.