Exploring Intermediary Liability In Crowdfunding

Law360, New York ( June 17, 2016, 11:47 AM EDT) -- Intermediaries are Regulation Crowdfunding's gatekeepers. Under the crowdfunding provisions of the Jobs Act of 2012, all Regulation Crowdfunding offerings must be conducted through intermediaries. Intermediaries do not just provide a platform on which offerings can be conducted. The U. S. Securities and Exchange Commission also charges intermediaries with ensuring issuer and investor compliance with relevant crowdfunding rules, and preventing so-called "bad actors" from utilizing intermediaries for their offerings. . . .

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