FundMe has announced the launch of its new Broker/Dealer Partner Program for FINRA registered Broker/Dealers, providing an easy way for dealers to satisfy their need for a Regulation CF solution without building all the compliance technology and related infrastructure, rapidly accelerating their digital transformation and helping them provide better customer experiences.
Regulation CF provides an exemption from the registration requirements of Securities Act Section 5 for certain crowdfunding transactions. To qualify for the exemption under Section 4(a)(6), crowdfunding transactions by an issuer must meet specified requirements, including the following:
- the amount raised must not exceed $5,000,000 in a 12-month period;
- non-accredited investors individual investments in all Reg CF issuers in a 12-month period for are limited to the greater of $2,200 or 5 percent of the greater of the investor’s annual income or net worth, if either the investor’s annual income or net worth of the investor is less than $107,000; and 10 percent of the greater of annual income or net worth (not to exceed an amount of $107,000), if both the investor’s annual income and net worth is $107,000 or more; and
- accredited investors have no investment limit.
The FundMe Broker Dealer Partner Program provides partners with a simple way to monetize Reg CF with no up-front development. The program has a transparent, tiered structure to bring a high level of support to FundMe’s most engaged partners.
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“Partners are increasingly important to FundMe’s growth strategy,” said Jim Borzilleri, CEO of FundMe. “We provide value by providing a complete Regulation CF solution so Broker/Dealers can refer clients and earn a portion of the fees earned, per existing regulations. It’s a win/win.”
“Our focus with the Broker/Dealer Partner Program is to offer a Reg. CF solution to a qualified Broker/Dealer’s existing offerings. Now that the limit has been raised to $5M, it can not only help more issuers, but positively impact the bottom line” says Trent Ward, Vice President at FundMe. He went on to say that the Referral Partner Program offers ways for partners to open a new conversation with prospects, or to strengthen existing relationships by recommending a Reg. CF platform like FundMe for raises up to $5M.
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