Notice2025-08122
Submission for OMB Review; Comment Request; Extension: Rules 400-404 of Regulation Crowdfunding (Funding Portals)
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 9, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 89 (Friday, May 9, 2025)</title>
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[Federal Register Volume 90, Number 89 (Friday, May 9, 2025)]
[Notices]
[Pages 19771-19772]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-08122]
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SECURITIES AND EXCHANGE COMMISSION
[OMB Control No. 3235-0727]
Submission for OMB Review; Comment Request; Extension: Rules 400-
404 of Regulation Crowdfunding (Funding Portals)
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
400-404 of Regulation Crowdfunding \1\ (17 CFR 227.400-227.404) under
the Securities Exchange Act of 1934 (``Exchange Act'') (15 U.S.C. 78a
et seq.).
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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 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 allow 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
[[Page 19772]]
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 the annual industry time burden
to comply with Rules 400-404 is approximately 36,315 hours per year.
The Commission staff estimates that the annual industry cost burden to
comply with Rules 400-404 is approximately $618,293 per year.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid OMB Control Number.
Written comments are invited on: (a) whether this collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (b) the accuracy of the agency's estimate of the burden
imposed by the collection of information; (c) ways to enhance the
quality, utility, and clarity of the information collected; and (d)
ways to minimize the burden of the collection of information on
respondents, including through the use of automated collection
techniques or other forms of information technology.
The public may view and comment on this information collection
request at: <a href="https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202412-3235-002">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202412-3235-002</a> or send an email comment to
<a href="/cdn-cgi/l/email-protection#de939c86f091939cf091978c9ff08d9b9d81babbadb581b1b8b8b7bdbbac9eb1b3bcf0bbb1aef0b9b1a8"><span class="__cf_email__" data-cfemail="e7aaa5bfc9a8aaa5c9a8aeb5a6c9b4a2a4b88382948cb88881818e848295a7888a85c9828897c9808891">[email protected]</span></a> within 30 days of the day
after publication of this notice by June 9, 2025.
Dated: May 5, 2025.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-08122 Filed 5-8-25; 8:45 am]
BILLING CODE 8011-01-P
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