🏛 Understanding FINRA and the SEC in Crowdfunding
If you're new to private investing or online capital raising, you may have seen references to FINRA and the SEC. These are two key regulatory bodies that oversee how companies raise money and how platforms like DealMaker operate within the law.
This article explains who they are, how they relate to crowdfunding, and why it matters to you as an investor.
🔍 What Is the SEC?
The U.S. Securities and Exchange Commission (SEC) is the federal agency responsible for enforcing securities laws and protecting investors.
In the context of crowdfunding, the SEC:
Creates rules for how companies can raise capital from the public
Requires companies to disclose certain information before accepting investments
Monitors compliance to reduce fraud and promote fair markets
Learn more:
🔗 About the SEC
🔗 SEC: Regulation Crowdfunding
🔍 What Is FINRA?
The Financial Industry Regulatory Authority (FINRA) is a non-governmental, self-regulatory organization that oversees broker-dealers and funding portals registered with the SEC.
FINRA:
Registers and regulates funding portals that facilitate crowdfunding offerings
Ensures platforms meet standards for investor protection and fair dealing
Provides tools for investors to research firms and monitor fraud alerts
Learn more:
🔗 About FINRA
🔗 FINRA’s Role in Crowdfunding
🤝 How It Relates to DealMaker
DealMaker is a technology provider that supports companies raising money online. While DealMaker itself is not a broker-dealer, many offerings on the platform are conducted in partnership with registered intermediaries (such as broker-dealers or funding portals) who are subject to SEC and FINRA rules.
For example:
Offerings under Regulation Crowdfunding (Reg CF) must be conducted through a registered FINRA member funding portal or broker-dealer
Companies using Regulation A+ or Regulation D must still comply with SEC disclosure and eligibility requirements
DealMaker supports compliance by integrating identity verification (KYC/AML), audit trails, and secure investor workflows
📌 Investing through DealMaker does not exempt you or the issuer from any applicable legal or regulatory obligations.
🧠 Why It Matters to You
As an investor, the involvement of the SEC and FINRA means:
Companies must meet disclosure requirements before accepting your money
Platforms must follow rules that are designed to protect your information and reduce fraud
If something seems suspicious, there are channels to report concerns and research investment entities
Look up a registered firm:
🔗 FINRA BrokerCheck
🔗 Search SEC Registered Entities
📬 Questions?
If you’re unsure how a particular regulation applies to your investment on DealMaker:
Review the offering documents in your dashboard
Contact the issuer’s investor relations team
Or reach out to DealMaker Support for assistance