On July 5, 2012, FINRA announced that it is accepting public comments on the appropriate scope of FINRA rules that should apply to its member firms engaging in crowdfunding activities under the JOBS Act, either as "funding portals" or as brokers. FINRA is accepting comments until August 31, 2012.

Crowdfunding involves the use of the internet and social media to raise capital, typically from a large number of people and in relatively small amounts per person. Title III of the JOBS Act requires intermediaries acting on behalf of crowdfunding issuers to register with the SEC as a funding portal or broker and with an applicable self-regulatory organization, such as FINRA.

The SEC is also seeking public comments on the crowdfunding provisions of the JOBS Act and to date has received more than 90 comments.

To learn more about crowdfunding under the JOBS Act, see Practice Note, JOBS Act: Crowdfunding Summary.