Yesterday at the SOCAP conference, Dana Mauriello of Profounder shared that the California Department of Corporations has made it clear that online securities offerings are not okay without a broker-dealer license.
According to a post by peHUB Wire, “U.S. Securities and Exchange Commission officials in March met with secondary market executives to warn them of impending regulatory changes. . . . The regulators told the executives that they want more stringent checks of individuals’ accreditation and improved diligence regarding the financials of companies being auctioned to investors . . . .”
The take home message? Buyer beware! Before using an online platform for capital raising, do some due diligence to make sure you don’t inadvertently violate the securities laws!