April 25, 2012 (New York, NY) – On Wednesday, April 18, the crowdfunding industry’s 13 top debt and equity crowdfunding platforms and industry experts met to create a Statement of Intent for a lasting organization that will champion, advocate for, and represent the global crowdfunding industry. Two days later, this group—the Crowdfund Intermediary Regulatory Association, or CFIRA—presented its Statement of Intent to the Securities & Exchange Commission (SEC). CFIRA’s complete Statement of Intent can be found on www.Crowdsourcing.org.
While “crowdfund investing” was made legal with the signing of the Jumpstart Our Business Startups (JOBS) Act on April 5th, the law does not go into effect until 2013. That’s because the SEC has 270 days to make the rules around which the legislation will operate in daily life. CFIRA will play an active role in this process. A letter from the newly formed CFIRA was sent to President Obama the day the JOBS Act was signed. In it, CFIRA’s members reiterated their desire to develop a transparent marketplace for crowdfunding, in which investor confidence is the group’s number one priority. The President acknowledged this group in his comments at the signing.
CFIRA has quickly grown in size, and is open to participation from the industry. The group will focus on working with the SEC, the Financial Industry Regulatory Authority (FINRA), and other possible affected governmental and quasi-governmental entities to establish industry standards and best practices, and potentially to provide industry oversight. As shared in its Statement of Intent, the group “pledges to work carefully and without delay to help ensure that a crowdfunding investment framework thrives in the U.S. so entrepreneurs can innovate and create new jobs.”
“To be clear, CFIRA’s role for the next 250 days of the 270-day rule-making period is, specifically, to serve as a voice of the industry with the appropriate regulators and to provide continuing regulatory education to the industry,” said Candace Klein, co-chair of CFIRA. “We welcome all voices in this effort, and time is of the essence.”
Additionally, each Monday, those interested can join the CFIRA leadership group for a Live Chat at 9 am PDT / 12pm EDT / 5pm BST on Crowdsourcing.org. Post any questions to the group or topics you would like the group to address here: http://www.crowdsourcing.org/question/add. Follow this link to register or to read more about the Live Chat session: http://www.crowdsourcing.org/chat.
The Crowdfund Intermediary Regulatory Association, or CFIRA, was established following the signing of the Jumpstart Our Business Startups (JOBS) Act. CFIRA is an organization formed by the crowdfunding industry’s leading platforms and experts. The group will work with the Securities & Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and other affected governmental and quasi-governmental entities to establish industry standards and best practices, and potentially to provide industry oversight. CFIRA .