Regulation R Implementing Exceptions for Banks from the Definition of 'Broker' in Section 3(a)(4) of the 1934 Exchange Act

As a result of the Gramm-Leach-Bliley (GLB) Act, banks are required to "push out" certain of their securities brokerage activities to registered broker-dealers. In September 2007, the SEC and the Federal Reserve Board jointly adopted Regulation R to implement several of the exceptions for a...

The Case of SoMoLend: Crowdfunding Platforms and Other Startups Beware of Potential Securities Law Violations

SoMoLend – Social Mobile Local Lending – is a crowdfunding platform that has peer-to-peer lending technology that allows businesses to obtain loans from a network of lenders, typically located in the same geographic area (banks, credit unions, community-development financial institutions...

First Enforcement Action Taken Against Crowdfunding Site

For the first time, regulators are taking action against one of the many crowdfunding sites that have sprung up since the passage of the JOBS Act. The Ohio Division of Securities issued a notice of intent to issue a cease-and-desist order against the Cincinnati-based crowdfunding platform SoMoLend and...