FINRA Guidelines: How to Apply as a New Funding Portal?
January 29, 2016, republished [original content]
FINA has published guidelines for firms to register as funding portals for Title III, Regulation Crowdfunding.
For your firm to become a registered funding portal with FINRA, your firm must complete the following steps.
1. Reserve Your Firm’s Name
Make sure to request and reserve a proposed name for your firm from FINRA before filing with the SEC. FINRA checks that the name is not identical to an existing member firm’s name or so similar that it will confuse or mislead others.
To reserve a name, please complete the Firm Name Reservation Request Form (PDF 100 KB).
Learn more about reserving a firm name.
2. File with the SEC
Applicants must complete SEC Form Funding Portal and submit it to the SEC. The form is submitted electronically using EDGAR. The SEC will assign your firm an SEC file number that is required to gain access to the FINRA Entitlement Program.
3. Complete the FINRA Entitlement Form
Each funding portal firm must designate a Super Account Administrator by completing the New Funding Portal Organization Super Account Administrator (SAA) Entitlement Form. For more information on FINRA’s Entitlement Program and designating an SAA, visit Entitlement for Funding Portals.
4. Submit Fingerprints
SEA Rule 17f-2 generally requires your firm to submit fingerprints for each person who is a partner, director, officer or employee of your firm, subject to certain exceptions. Once your firm receives its Organization ID# generated through the FINRA Entitlement Program, submit fingerprints for your associated persons to FINRA. For additional information regarding fingerprints visit Fingerprints for Funding Portals.
5. Pay Your Application Fees
You must pay your application fee by electronically wiring the payment to FINRA, using the instructions below. No other payment method will be accepted for the application fee. In order to ensure proper posting of the payment to the firm’s account, descriptive information needs to be entered into the Reference Number field of the wire, which must include the phrase “Funding Portal” as well as the firm’s legal name (i.e., the approved name of the firm that has been reserved by FINRA).
Wire Transfer Instructions
Bank Name: Bank of America
Transfer funds to: FINRA
Wire ABA Number: 026009593
ACH ABA Number: 054001204
Beneficiary: FINRA
FINRA Account Number: 226005684771
Reference Number: Funding Portal – [INSERT FIRM’S LEGAL NAME—RESERVED BY FINRA]
6. Complete Funding Portal New Member Application Form
Once your firm is entitled (i.e., receives login credentials), access Funding Portal Gateway to submit Form FP-NMA (the new member application for funding portals).
