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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.

The SEC is also looking at online secondary trading sites like SecondMarket and SharesPost.

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!

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