Notice2022-10817
Submission for OMB Review; Comment Request; Extension: Rules 400-404 of Regulation Crowdfunding (Intermediaries)
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 20, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 98 (Friday, May 20, 2022)</title>
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[Federal Register Volume 87, Number 98 (Friday, May 20, 2022)]
[Notices]
[Pages 31021-31022]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-10817]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-774, OMB Control No. 3235-0727]
Submission for OMB Review; Comment Request; Extension: Rules 400-
404 of Regulation Crowdfunding (Intermediaries)
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') has submitted to the Office of Management
and Budget (``OMB'') a request for approval of extension of the
previously approved collection of information provided for in Rules
300-304 of Regulation Crowdfunding.\1\
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\1\ See Regulation Crowdfunding, Exchange Act Release No. 76324
(Oct. 30, 2015), 80 FR 71387 (Nov. 16, 2015) (Final Rule)
(``Regulation Crowdfunding'').
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The collections of information required under Rules 400 through 404
is mandatory for all funding portals. Form
[[Page 31022]]
Funding Portal helps ensure that the Commission can make information
about funding portals transparent and easily accessible to the
investing public, including issuers and obligated persons who engage
funding portals; investors who may purchase securities through
offerings on funding portals; and other regulators. Further, the
information provided on Form Funding Portal expands the amount of
publicly available information about funding portals, including
disciplinary history. Consequently, the rules and forms allows issuers
and the investing public, as well as others, to become more fully
informed about funding portals in a more efficient manner.
Rule 400 requires each person applying for registration with the
Commission as a funding portal to file electronically with the
Commission Form Funding Portal. Rule 400(a) requires a funding portal
to become a member of a national securities association registered
under Section 15A of the Exchange Act. Rule 400(b) requires a funding
portal to file an amendment to Form Funding Portal if any information
previously submitted on Form Funding Portal becomes inaccurate for any
reason. Rule 400(c) provides that a funding portal can succeed to the
business of a predecessor funding portal upon the successor filing a
registration on Form Funding Portal and the predecessor filing a
withdrawal on Form Funding Portal.
Rule 400(d) requires a funding portal to promptly file a withdrawal
of registration on Form Funding Portal upon ceasing to operate as a
funding portal. Rule 400(e) states that duplicate originals of the
applications and reports provided for in this section must be filed
with surveillance personnel designated by any registered national
securities association of which the funding portal is a member. Rule
400(f) requires a nonresident funding portal to: (1) Obtain a written
consent and power of attorney appointing an agent for service of
process in the United States; (2) furnish the Commission with the name
and address of its agent for services of process on Schedule C of Form
Funding Portal; (3) certify that it can, as a matter of law, and will
provide the Commission and any registered national securities
association of which it becomes a member with prompt access to its
books and records and can, as a matter of law, and will submit to
onsite inspection and examination by the Commission and any registered
national securities association of which it becomes a member; and (4)
provide the Commission with an opinion of counsel and certify on
Schedule C on Form Funding Portal that the firm can, as a matter of
law, provide the Commission and registered national securities
association of which it becomes a member with prompt access to its
books and records and can, as a matter of law, submit to onsite
inspection and examination by the Commission and any registered
national securities association of which it becomes a member.\2\
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\2\ Exchange Act Section 3(h)(1)(C) permits us to impose, as
part of our authority to exempt funding portals from broker
registration, ``such other requirements under [the Exchange Act] as
the Commission determines appropriate.''
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Rule 403(a) requires a funding portal to implement written policies
and procedures reasonably designed to achieve compliance with the
federal securities laws and the rules and regulations thereunder
relating to its business as a funding portal. Rule 403(b) provides that
a funding portal must comply with privacy rules. Rule 404 requires all
registered funding portals to maintain certain books and records
relating to their funding portal activities, for not less than five
years, the first two in an easily accessible place. Rule 404(e)
requires funding portals to furnish promptly to the Commission, its
representatives, and the registered national securities association of
which the funding portal is a member true, correct, complete and
current copies of such records of the funding portal that are requested
by the representatives of the Commission and the registered national
securities association.
The Commission staff estimates that annualized industry burden
would be 36,775 hours to comply with Rules 400-404. The Commission
staff estimates that the costs associated with complying with Rules
400-404 are estimated to be approximately a total amount of $671,793.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information under the PRA unless it
displays a currently valid OMB control number.
The public may view background documentation for this information
collection at the following website: <a href="http://www.reginfo.gov">www.reginfo.gov</a>. Find this
particular information collection by selecting ``Currently under 30-day
Review--Open for Public Comments'' or by using the search function.
Written comments and recommendations for the proposed information
collection should be sent by June 21, 2022 to (i)
<a href="/cdn-cgi/l/email-protection#773a352f59383a3559383e253659243234281312041c281811111e14120537181a155912180759101801"><span class="__cf_email__" data-cfemail="327f706a1c7d7f701c7d7b60731c6177716d565741596d5d54545b515740725d5f501c575d421c555d44">[email protected]</span></a> and (ii) David Bottom,
Director/Chief Information Officer, Securities and Exchange Commission,
c/o John Pezzullo, 100 F Street NE, Washington, DC 20549, or by sending
an email to: <a href="/cdn-cgi/l/email-protection#91c1c3d0cedcf0f8fdf3fee9d1e2f4f2bff6fee7"><span class="__cf_email__" data-cfemail="fcacaebda3b19d95909e9384bc8f999fd29b938a">[email protected]</span></a>.
Dated: May 16, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-10817 Filed 5-19-22; 8:45 am]
BILLING CODE 8011-01-P
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